As the new environment dawns with Demonetisation, the year 2017 will surely bring in a paradigm move in India’s real estate sector. There would be changes in business dealings and this will bring in a new period in legislative compliance. Corporate restructuring would be unavoidable and there should be an overall change in business attitude. The builder-buyer association will itself go through a phenomenal change and new standards will
Well, to arrest the important downswing in the real estate business, it is important to take steps in the budget by the Government to increase the growth and also accomplish the dream of the PM to make Home Loans available for all. The primary question is therefore; will budget be a relief for home buyers?
There is no denying the fact that the Government has expressed its vision of housing for all by 2022 and to make it into actuality, a special motivation needs to be injected into the economy which can lend a hand to achieve the objective at a faster pace. Real Estate sector should be given a proper industry status. Some unique infrastructure status as par with the industry should be given to create a major change in the nature and the viewpoint of the Real Estate sector. This will be advantageous for the economy and the consumers as this will draw huge investments.
Well, it is to be understood that the demand of housing should be treated as Infrastructure as they are engaged in developing large scale projects that includes provision of water supply system, laying of roads sewerage, sanitation, water treatment, solid waste treatment, and to create recreational, educational, medical facilities as an essential part of growth of townships in accordance with Government’s set of laws.
It is important to pay special attention on the tax benefits for home buyers. It needs to be planned in a way to ensure peace of mind to the buyers. It is always good to reduce the applicable rate of interest.
The Union Budget 2017 has planned several positive measures to support the edifice of the Indian real estate sector. An understanding of urban real estate buyers exposes a line of scepticism with regards to under-construction projects and developers. For potential buyers to turn into new property owners, it is important that clients are optimized to the hilt. There is no denying the fact that there is a huge necessity of reasonably priced housing. It has however, been noticed that the meaning of priority housing has changed with ticket size of homes in the urban centres moving aloft. The Government needs to reconsider things to meet the hope of this growing urban middle class. This segment will keep growing and they will form the chief pool of house buyers with higher loan paying capacity. It is proposed that budget should allow an increased deduction on the interest payment made. This will surely cut down the effective rate of interest for the flat buyers.
An additional fundamental area where the builders look for help is in financing. If the government could offer government-owned institutional fund to the priority housing projects, it would surely allow private developers to take part in the same.
Let’s hope that the budget brings more sunshine to the Real estate sector.
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