Creating a single regulator for B.C.’s real estate sector was a key recommendation of several reports aimed at cracking down on money laundering in the sector,
What will be the effect of a budget 2018 on a home loan and real estate?
On Febrauary 1, Finance Minister Arun Jaitley is expected to present his last full year budget, for the 2018/19 year that begins April 1. It is expected that the budget will focus more on the infrastructure and housing sector to boost that country’s GDP. In the last year budget, affordable sector was given infrastructure status, with that we expect more for the segment to full the NDA government dream of Housing for all by 2022. The consumers expected consolidation of demand and over improvement in the market segment, in 2017 we expected that RERA will bring transparency, with GST to ease the sector, but unfortunately both these expectations were not met. In coming budget we expect the applicable GST on the real estate to come down and should also include reforms which will be in a favour of the developers and the buyers. – Mr. Ssumit Berry, Managing Director, BDI Group
Real estate sector experienced many jolts in the year 2017. The real estate regulatory act (RERA) came into force in May 2017 seeks to protect the home-buyers, as for 2018-19 budget the entire sector expects transparency, accountablity and to increase investor confidence in real estate market in long run. In the same year Goods and Service Tax (GST) was also implemented, which replaced multiple taxes. The fraternity expects positive results in 2018 with favorable terms and conditions which would work in the favour of both buyers and developers. To further promote the sector incentives should be given to the first time home-buyers which will definitely promote the real estate segment in the long run bringing smiles on the faces of the people associated with it. Focus should be given for the supply of ready-to-move-in properties as the developers are seen focusing on completing their existing projects. – Mr. Ravish Kapoor, Director, Elan Group
Every year, the Union Budget presents the Government with an opportunity to tweak the direction that the Indian economy is taking. Sometimes, hard decisions are taken which, while necessary, do not necessarily go down well with Mr Everyman.
At other times, the Union Budget is clearly meant to be a crowd-pleaser. This invariably happens when an incumbent Government is finishing its term and general elections loom, for obvious reasons.
The current Government has done a lot for the Indian real estate industry, even when it was in the form of hard decisions like demonetization and the disruptive but very necessary RERA.
With the hard decisions now taken, the Indian real estate sector fervently hopes that it is at the receiving end of the benevolence implied in a populist budget. This benevolence needs to go beyond improving personal finances and the implied boost to real estate investment appetite.
Despite the Government’s very proactive stance towards cleaning up and regulating the sector, there are still several policy-related pain points where the coming Union Budget can make a decisive difference:
1. Single-window clearance
Why this has not happened despite it being a very clear and dire need – even more so given the Government’s dream of Housing for All by 2022 – is a bit of a mystery.
The clearance and approval process for residential real estate projects has been an impediment for a long time. Although many initiatives have been taken to create a conducive business environment in the sector, the demand for single window clearance mechanism in totality is yet to be fulfilled.
If implemented, single-window clearance can significantly reduce the overall projects cycle time and developers will be able to focus on their core business of project execution.
Post-RERA, it has become all the more important to facilitate smooth clearances and approvals so that there are no execution delays due to procedural hindrances.
2. Industry status to real estate sector
Again, a long-standing demand which has so far gone unmet. Real estate is one of the key GDP contributors and the fourth-largest employment generator in India.
Extending industry status to the entire real estate sector will help developers to raise funds at lower rates and, in turn, reduce their project costs – which will help in pushing demand.
Additionally, the inclusive growth of the real estate sector will help in generating employment across various sectors which are directly or indirectly related to it.
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