Budget 2018 is balanced with focus on affordable housing: NAREDCO
National Real Estate Development Council (NAREDCO), apex body for real estate sector, had met the finance ministry officials during the process of budget preparations and submitted a memorandum to them regarding the demands of the real estate sector. The major demands included rationalization of GST for real estate, Industry status for the complete real estate sector and streamlining of procedures and procedural hurdles. Realty Plus attended the Naredco’s post budget press conference to hear it from the horse’s mouth about the major hits and misses of the Budget 2018.
NAREDCO, called the overall budget presented by Finance Minister, Arun Jaitley as balanced. Dr Niranjan Hiranandani, CMD Hiranandani Communities and President (Nation), NAREDCO hailed the overall budget calling it a perfect amalgamation of populist and socialist demands, he also opined Government has continued making announcements that will take the country on the path of growth as across sectors.
Hiranandani, further added that affordable housing shall witness increased growth in across Tier 1, Tier 2 and Tier 3 cities. Consequent to this, with real estate having forward and backward linkages, supply chain industries – Cement, Steel, Iron, Construction Materials and Transportation, will also witness growth. This will boost economy, create employment and avenue for housing and real estate.
Critically analysing the budget further, Hiranandani, tells Realty Plus that impetus given to Smart Cities Mission in this budget is remarkable, the selection of 99 smart cities and allocation of budget worth Rs 2.04 lakh crore is a ground breaking announcement. So the growth in infrastructure and Smart Cities will act as a driver for growth of real estate, it will open up avenues of further growth in new regions for us. We are elated with this announcement and hope that at ground level also the infrastructural growth happens, as infra will be the main driver for growth of all the sectors in our country.”
Further talking about the demands that Naredco has put in front of Finance Minister, Hiranandani, said, “We are indeed grateful to the Government for considering NAREDCO’s request of lowering GST rate from 18% to 12%, which is effectively 8% now, after considering land abatement at 30 percent. The beneficiaries will be houses built as Affordable Housing; houses under Credit Linked Subsidy Scheme for Economically Weaker Sections (EWS); lower-income group (LIG), middle income group-1 (MlG-1) and middle income group-2 (MlG-2) under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana (Urban).”
Two demands those are long pending and require dire attention has gone unattended too- the demands for Single Window Clearance and Infrastructure status demand for real estate. Talking to Realty Plus, Hiranandani added, “ Real estate is one of the major contributor to GDP and thus it should be given infrastructure status, also single window clearance is the need of the hour. Although RERA has streamlined lot of things but from real estate developers perspective, it is equally important for our projects to get single window clearance, so they aren’t stuck in red tapism of various rules and regulations.