What is real estate industry expecting from Union Budget 2014-15?

By Accommodation Times News Services

rupeesTwo 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.

  1. 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.”
  2. 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.
  3. 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.”

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