What Can The Real Estate Industry Expect From This Year’s Budget

With a lot said and positive hopes shown by the new government in its first budget, budget time is again round the corner and as always there are a lot of expectations that this year’s budget will give the necessary boost to the economy.

This budget will be the framework of new government’s economic agenda for development. This is a high time for some work as a lot of time has already been lost in hollow talks. Housing deserves to be given the status of industry and affordable housing is the need of the hour and hence should be on the priority list of the government with direct and indirect tax concessions.

Finance is the life line real estate, both for the buyers and also for estate developers. With inflation being stable for quite some time we saw the Central Bank slashing down the repo rates by 25 basis points and giving real estate industry a reason to cheer but this recent cut in ‘repo rates’ is mere a beginning and the real estate industry is moving back to ‘positive segments’ but a lot still needs to be done. Union budget is expected to include measures which would result in significant lowering of home loans interest rates.

Let’s take a look on some of the measures which if taken may prove to be a great boost to real estate industry.

1. Providing some tax incentives to boost rental housing segment:- presently rental income is treated as normal taxable income. By providing tax breaks specific to rental income will give a boost to this segment of rental housing in the country and help increase rental supply. So the union budget needs to provide tax incentives for renting of residential property.

2. Providing more incentives for sustainable real estate:- more and more incentives are being provided by the government to promote green real estate. The government should furthermore focus on encouraging such constructions. The green real estate is slightly costly but it provides the ultimate benefit in the long run. The government providing subsidies can help promote developers to construct more into the green real estate segment.

3. Enable faster project approvals:- fast approvals would strengthen up the supply pipeline, help bring prices down and would also ensure that real estate remains viable as a business. The Real Estate regulatory bill (RERA) should now be implemented so that the Indian real estate market becomes attractive for foreign investors and buyers may have a wider range to choose from, apart from the ones that we already have such as many of the townships providing great choices in Residential property in noida Extension or a commercial property in noida Extension.

4. Slashing interest rates further:- If the interest rates on lending to real estate developers come down post the budget; this will help rationalize the cost of construction. Also it will have a positive impact for home buyers, as it would help in reducing property prices. From the perspective of real estate developers, the budget is expected do the needful to bring down the cost of borrowing for developers, as raising capital for development and constructing of new projects remains a mammoth challenge. Lending rates for real estate development from finance institutional sources are high while raising funds through other sources are even more expensive.

 

Hence, there is a lot to look forward. So if you are planning to buy a Residential property in noida Extension or a commercial property in noida Extension or even at some other location, it will be more within reach. Good days to follow.