Pre Budget Expectations
Authored byTushadDubash, Director, Duville Estates
“The government’s progressive initiatives have significantly enhanced the real estate market sentiment. With the union budget just around the corner, we hope to see robust initiatives to boost the industry, which is a huge contributor to the nation’s GDP.
Infrastructure being a key driver will further drive momentum in the real estate market. New Inventory that includes affordable housing projects coming up on the suburban tracts will certainly benefit with new and growing infrastructure. This will help in seamlessly connecting different nodes of the city and provide developers and homebuyers with more options to explore.
The quantum of unsold residential inventory across micro-markets in the country is looming and the government should continue to focus on the ongoing and upcoming infrastructure projects as it will enhance connectivity thereby attracting homebuyers. Further, rate cuts could help boost the buying sentiment to reduce the existing supply of inventory in the market.
Additionally, extending income tax exemption applicable to affordable housing would allow buyers to purchase their dream homes without added financial strain and provisions for single window clearance for housing projects which would ensure speedy completion of projects. The proposal to consider a GST rate cut on under construction properties will also help and this benefit could then get passed on in a transparent manner to the customer.
The launch of the smart cities mission (100 smart cities) are in various stages of implementation and with the Government taking adequate various initiatives like these along with incentives for Green buildings and those focused on sustainability, these added incentives / tax subsidies to developers to construct green homes will contribute to sustainable future and greener cities.
We hope the government takes into considerations the expectations of the developer and homebuyer’s community and provides respite to the real estate industry.”