Every year budget brings in the expectations of some relief on taxes and rebates, in a way which can ease the pressure of inflation. In the previous year, government has given the due consideration to real estate sector. Again in this financial year, we expect the support to get even stronger. Real estate sector directly or indirectly benefits 250 ancillary industries; it therefore should be given the status at par with infrastructure industry.
“With 1% subsidy on housing loans (under Rs. 10 lakh), the Union Budget 2011- 2012 offered some concession towards the affordable housing and also encouraged more buyers to invest in properties. Similar measures should be taken in the Union Budget 2012- 2013, as a need for providing more housing, especially to the LIG and EWS sections has surfaced. The concept of Special Residential Zones (SRZs) should also be implemented. The affordable housing projects to be put in priority lending,” Mayur Shah, MD. Marathon Group expressed his view on upcoming budget.
Shah also said that, “In addition, realtors should be incentivized on constructions of townships and green building, which may promote mass housing and eco-friendly constructions, respectively. There is huge demand for affordable rental homes in urban areas. No new rental stocks are created in the LIG & MIG segments as it is not a viable option. The Finance Minister should give adequate incentives to encourage rental housing scheme, which were not given due consideration in the budget, last year.”
Besides, improvement of infrastructure, especially in the tier II and III cities should be considered as a critical and major concern. More funds can be allocated through JNNRUM with carrot-and-stick approach to local urban bodies, so that they focus on urban & social infrastructure projects, such as urban transport, water, drainage, schools & health care, shah added.
“There are a few areas that need to be looked at. Firstly, I think financing options for the real estate segment, which have become fairly accessible in recent years should be further liberalized. There is also a need for stricter regulations that can effectively curb illegal constructions. Thirdly, more transparency is required when it comes to mentioning the exact sale area during any property transaction. I think the government should ensure that it’s the carpet area that is the deciding factor when calculating the sale able area,” Chaitanya Parekh, CMD, Soham World, Mumbai said.
This will not only bring about more transparency in realty deals but customers will also benefit if this ambiguity is removed. Lastly, FDI should be allowed in smaller properties also. This will not only help the economy but also boost demand by making real estate even more affordable, Parekh said.
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