Real Estate is Ready for Explosive Growth
Alok Saraf, Associate Partner, Grant Thornton Bharat LLP
The real-estate industry, passing through protracted recession even before the pandemic which worsened it manifold, pins its hope on the Budget for swift revival. The sector expects a two-pronged approach from the Budget — a just GST regime for the industry for bringing down the cost, and ample liquidity for generating demand. A rational GST regime, with temporary waiver or reduction in GST rate for retail home buyers and allowance for availing input credit during construction of commercial properties to commercial leasing and rental segment, will pare down the construction cost for the sector leading to a boost in demand.
The real estate sector is confronting crippling liquidity for a long time. A relaxation in norms for raising capital, tax incentives for home buyers, reduction in housing finance cost through preferred interest rates, continuing subsidies under Pradhan Mantri Awas Yojana (PMAY), and paving the road for the quick availability of Alternate Investment Funds (AIF) are some of the relief measures the sector expects. These initiatives will put more money in buyers’ and developers’ hands, stoking the revival in the sector. With pandemic ebbing, and green shoots in the economy in sight, the industry is ready for explosive growth.