Real estate urges for relief in upcoming budget

DELHI, India - Feb. 3, 2015 - PRLog -- NOIDA: The real estate, which reeling under slump has sought relief from the finance and urban development ministry in the upcoming budget. Confederation of real estate developers association of India (CREDAI) has also write to the ministries to incorporate some reason to cheer for the sector. Apart from that some developers have personally also write request letters to the ministries.

CREDAI office bearers said that CREDAI has sent a proposal to finance, urban development ministry to fulfill the long lasting demands real estate. "We want infrastructure status for real estate apart from that there should be exemption from the tax and less formalities to obtain home loans for the buyers," the official said.

P Sahel Vice chairman Lotus Greens India Inc. is eagerly awaiting the forthcoming Union Budget 2015-16. The positive moves taken by the government last year like the principal approval to REITS by SEBI would give cash strapped investors, High Net Worth individuals and other investors easy access to funds and create new avenues for real estate developers. Going forward as part of the developer's community, we expect attractive tax norms for REITs and other such investment trusts.

"It will be appreciated if the interest rates for home loans are reduced which will give an overall boost to the sector and help in bridging the gap between the demand and supply. Further, if the government initiates steps towards providing special benefits to green and sustainable developments, it will have a profound positive impact as it is the future of real estate industry. This coupled with single window clearance system will help in reducing time for project completion, thereby bringing down the overall cost of construction," Sahel added.

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SS Bhasin, MD, Bhasin group said, "Entire corporate world is eyeing on Narendra modi ever since he was become PM of India. Now Modi led government is about to present the budget, real estate sector want him to make decisions which can help real estate coming back on track again. Real estate is reeling under slump and the government should consider the point of view of developers and buyers both. There is need to take action control interest rate and single window system as well."

RK Arora, CMD, Supertech and vice-president, CREDAI (Western UP) said, "Last budget had brought some relief to the real estate sector. The sector is reeling under slump and need immediate step for its revival. To meet the ambitious project of PM Modi housing for all by 2022, there is need to give special packages for low cost housing. Like before 2008, houses below one thousand sq. feet were exempted from income tax under 80IB but later the relief was removed. There is requirement of such steps to boost low cost housing and easy process to speed up pace of development."

"After sworn in of Modi government, there is positivity and sales up has been registered. But the government need to take several steps to boost the real estate sector as well. The construction cost is going up. The sector on several platforms have raised the issues and we are hoping in the coming budget, the government will come up with necessary, measures steps to achieve the desired results," Amit Gupta, MD, Orris Infrastucture.

"The real estate sector is burdened with high costs because of which there is little possibility of reduction in home prices in most micromarkets. Construction cost has increased by 40% in two years, while government taxes and premiums have also gone up substantially. This eliminates any scope for reduced prices, despite the weak market. Banks' reluctance to lend to real estate companies has led to increased cost of borrowing, adding to the overall cost," Amit Gupta said.

Source: Indiatimes.com