The Indian real estate sector is betting big on the upcoming 2020-21 Union Budget and expected measures/sops in order to revive the sector and obtain some much-needed relief. Experts feel that the sector is waiting for the swift execution of the AIF (Alternative Investment Funds) for reviving stalled/stressed realty projects. Most industries are hoping for several sops from the Government to revive consumption and liquidity including tax breaks.
The real estate sector is also hoping for industry status in the new Budget. The AIF will be a major breather while developers will be hoping for a one-time re-structuring/rollover of existing project loans. They are hopeful of tax reforms and price corrections along with single window clearance and GST cuts.
They are also hopeful of a renewed focus on co-living and rental housing sectors. With income tax, GST, capital gains tax and stamp duty already being imposed on home buyers, there may be added tax breaks for new buyers. The industry is hopeful of the Government facilitating fund-raising from other sources through the relaxation of norms. Getting ITC benefits back into GST for homes under construction will help in lowering property prices.
Tanuj Shori, the Founder & CEO at Square Yards, has opined that for becoming a $5 trillion economy, India has to focus on accelerating consumer spends and infrastructure development. He talked of how the Government should address the issue of proper funding for affordable housing from NBFCs and banks at competitive rates of interest. Some experts have suggested measures like 50% GST (paid) reversal for real estate purchases as well.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.