By Accommodation Times News Services
Two days are remaining for the announcement of Union Budget 2014-15 by new government, peoples expectation are very high from this year’s budget. Real Estate people are hoping for an upliftment in the sector. The focus is likely to be more on the expenditure side where direction will be provided on capex, subsidies and other expenses. On the revenue side, there may not be too much flexibility except probably relating to disinvestment which could be of a higher magnitude. Given fairly adverse conditions relating to monsoons, inflation and the crude oil situation, it would be a challenge to come up with a Budget that meets all expectations.
Some of key real estate experts have shared their expectations from this year’s fiscal budget.
- MR. P SAHEL , VICE CHAIRMAN – LOTUS GREENS DEVELOPERS PVT. LTD, says “Considering the lower growth rate of the economy in the last few years, the forthcoming Union budget is very critical and every industry sector is pinning hopes on it. Being a part of the real estate industry we hope that the new budget will bring in reforms and roll out more friendly policies, some of these could be reforms for allocation of funds to developers at lower rates, incentivising developers who are adapting practises for sustainable developments etc. For an overall boost to the industry, the government should consider increasing the tax exemption limit for interest amount payable on home loans. Also introduction of single window clearance system and steps towards providing the infrastructure status to the industry will further benefit the sector.”
- MR. PRADEEP JAIN, CHAIRMAN – PARSVNATH DEVELOPERS LTD. expressed their views as, “We are very optimistic about the upcoming budget and pinning our hopes on the new Finance Minster. This time the industry is eagerly awaiting the industry status which will ensure that policy dispensation available for infrastructure projects also extends to the realty sector. Single Window Clearance with pre-defined timelines should be introduced for speedy approvals and bringing transparency into the sector. Reduction in interest rates for home buyers in affordable segment through interest subvention should be given to lift the buyer sentiments. It is right time that the sector is given an impetus in the form of policy reforms to help improve the economic scenario of the country. For this, Government of India must liberalise its FDI policies and relax it to attract more foreign investors. It should cut down the minimum lock in period to million.
- Mr. Vineet Singh, EVP and Business Head, 99acres.com.said, “ The real estate sector is standing at the cusp of development and the Union Budget 2014-15 can play a catalytic role in taking the sector to the next level. On the institutional front, giving ‘infrastructure’ status to housing will help real estate developers raise cheap funds from more credible sources and for longer durations thereby making homes more affordable. We also expect that ECB limit which is currently pegged at $1 billion to be removed since the real estate industry requires funds in excess of $30 billion and this shortfall can be met using ECB.”