The real estate is looking for tax relief, strengthening of the investment climate and industry status in the upcoming Budget. Through this, the sector wants to avail legitimate and easy finances from banks and financial institutions.
Pankaj Bansal, Director M3M India, says real estate buyers are looking forward to an increase in the tax rebates. “The demand towards investments in real estate from these young millennials will only increase with the relaxation in taxes and rebates by the Government in the Union Budget 2022.”
Mohit Goel, MD, Omaxe Ltd, said the sector wants the government to address its long-pending ask of industry status and single-window clearance in the upcoming budget. “Bagging the industry status will facilitate the realty sector to avail legitimate and easy finances with banks and financial institutions. The single-window clearance will help fast-track the construction and delivery process as delays in approvals continue to be a roadblock for developers,” he said. “Another expectation is to extend the tax relief to the homebuyers by raising the tax deduction limit of home loans from two lakh per annum to five lakh per annum. This would have an encouraging impact on homebuyers, especially first-time buyers across the nation.”
Santosh Agarwal, CFO and Executive Director at Alpha Corp, expects the government to respond to calls for a single-window clearance system. “The necessity for an online single-window clearance is urgent, as it would speed up the multiple approval procedure. An online single window clearance solution is urgently needed also to increase system transparency. We are optimistic that the government would shape its policy actions to promote real estate demand even further this year.”
Abhishek Pandey, the Vice-President Customer Engagement and Distribution, Viridian RED, believes that with the government’s focus on Atmanirbhar Bharat and to make India a USD 5 trillion economy by 2025, the ease of doing business should be enhanced. He said reforms should be implemented to augment the manufacturing sector. “To achieve this, India would require high-quality offices and a big chunk of investment.”
The National Real Estate Development Council (NAREDCO), an apex real estate body formed under the aegis of the Ministry of Housing and Urban Affairs – Government of India, has presented its recommendations for the upcoming Budget. It has urged the government to bring in provisions to promote homeownership and affordable, and rental housing as well as support development firms.
Rajan Bandelkar, National President of NAREDCO, highlighted that the government has been supportive ever since the start of the pandemic. “While it has taken up a pro-growth stand, there is a need to keep the guard up and continue the support offered to the sector. Amidst the current lockdown and economic uncertainty, there is a need to create a sense of homeownership and create value in buying homes.”
The NAREDCO pointed out the need to encourage people to buy homes. It believes one of the steps would be that the first-time homebuyer should get interest on home loan deducted from income or at least the Interest Subsidy should be increased to Rs 5 lakh from the current Rs 2 lakh.