Disorganised Real Estate Sector should be the primary focus of upcoming Union Budget 2016-17 – Dr. Anil Jindal, Chairman, SRS Group

Bengaluru, February 19, 2016: Potential home customers and the real estate players are eagerly waiting for big announcements from the Union Budget 2016-17. The growth of the sector has been crippling with the growing gap between demand and supply of the properties. The disorganised real estate sector has been bawling for industry status for quite some time. Although the PM led NDA Government is leaving no stone unturned to augment the growth of sector, but the disoriented industry still needs a special focus and attention for revival of the sector.

“We are hopeful that this annual exercise will announce the much needed Real Estate Regulatory Bill; which has been pending for long now. This will bring in more transparency in the system and will help in avoiding duplicity and wrongful by fraudulent. A Regulatory body needs to be set up to address problems of the industry and make amendments in the policies, as the industry progresses. This will also enable real estate sector to attract more FDI.”

“A Single Window Clearance system needs to be introduced for quick clearance and approvals. This will help the developers to make on-time delivery of projects and gain customers’ confidence.”

“The expected Budget must address the issue of removing DDT from REIT funds. Since the inception of REIT, there hasn’t been a single REIT listing in India and removal of DDT will result in a rush of investment in REITs. REITS should be exempt from taxes on rent, stamp duty, transfer of assets and distribution of dividends, so that these trusts are resourceful and the burden on investors is reduced.”

“We look forward to the implementation of GST Bill in a definite time period, which will replace all other levies by Central and State governments and help the real estate sector in many ways. A single tax will eliminate the need of paying various taxes and provide a big relief to developers as well as customers.”

“With the Govt.’s target of “Housing for All by 2022” and “Smart Cities” concept, the developers should be allowed easy financing options and tax benefits to boost affordable housing segment. The scarcity of land is another issue in the metro cities; which needs to be addressed as there is a plan to provide 20 million houses over the next six years. Govt. should promote private participations in this segment to boost the supply of affordable housing in India. The sector hopes to see more clarity on the Smart Cities scheme and the budget to be allocated for each smart city.”

“We expect the Govt. to increase tax deduction limit for housing loans to encourage buyers for purchase and tax concessions on housing insurance premiums. Increasing tax concessions on housing insurance premiums will persuade them to insure their properties and give a thrust to insurance sector as well, since Indian population hardly gets their properties insured.”

“The prices of steel, cement and other building materials should be reduced for benefit of the real estate industry; builders in particular.”

Corporate Comm India (CCI Newswire)