Union Budget 2022: Realty continue to seek long standing demands for pushing sustainable recovery in business

Real estate sector has been a growth driver and employment generating channel for a nation like India for a very long time. However, even after so many years of valuable contribution it still hasn’t been able to procure industry status from the government authorities. This one single move has the capability to spiral a rippling effect among the important industry stakeholders, and associated industries.

Getting Industry status remains the top priority in order to establish a smooth inflow of capital, thereby facilitating faster construction, smoother deliveries of projects and more infrastructure being developed at a faster rate. Therefore, the sector is pinning hopes on the upcoming budget for other alternatives like stimulus packages, and streamlined GST rates if possible. One of the recent real estate index report by a reputed consultant highlighted that positive sentiment is at an all-time high of 65 in Q4 2021.

Value of owning an asset
This spike can be attributed to the fact that the pandemic has reinstated a mindset that ownership of a financial asset is a must to build a secure future. There is no asset better than investing in real estate presently as it comes with a cushion of appreciating returns. Pandemic has proven an encouragement to the fence sitters who were planning on investing later in their lives. In terms of commercial real estate, the sector has been exhibiting strong standing from the previous year, as multinational and national corporations are profoundly signing up for new premises.

Wave of Expansion and Acquisitions
A wave of future expansion and acquisition is apparent in the market with almost every player scouting for as much growth as possible to stand still even during adverse times of lockdown or a vast virus spread. The circle of strong hiring in the last three to four quarters has also been a major driving factor.

Real estate has been a major contributor to the nation’s GDP. Industry status will reduce cost overruns, industry players have been raising their concerns about raw material price rise and demanding cement cartelization to be removed. Issues like price hike can prove to be a major hurdle, which will limit passing on the benefits to end-users and investors. Thereby, to ensure sustainable revival in the industry of real estate, a little push from the Finance Ministry in the upcoming budget can reap long-term benefits and sustainable growth.