Positive budget for real estate segment | SupportBiz

Policy Notes

Positive budget for real estate segment

The real estate sector has been reeling under a series of adverse circumstances events over the last few years. High interest rates, shaky global sentiments, decelerating GDP growth and liquidity crunch on the developers’ side are some of the factors that have interrupted the Indian real estate growth story.

In the backdrop of tough economic conditions, the real estate industry has expressed positive sentiments over the Union Budget 2013-14.

Samarjit Singh, Managing Director,  Indiahomes,  says, “The budget  will  re-energise  the realty sector. With the recent indications of a benevolent interest rate environment, coupled with the prospect of the real estate regulation bill, the budget will, in all probability, be the third leg of the real estate revival story. The sector  will be greatly benefited by  the favourable tweaking of the policy framework around taxation and an easing of the liquidity stranglehold currently imposed due to lack of viable finance options.”

Singh believes that the budget will provide a sentiment boost,  as the real estate regulation bill will provide the much-required policy boost to the industry.

Singh says, “Within the next quarter, we anticipate the entire real estate sector  to get reinvigorated. We  will be able to resume on the  growth path,  which we have stopped for the last many years because of extreme liquidity crunch and policy paralysis.”

Bhim Yadav, Chairman and Managing Director, Falcon Realty Services, welcomed the budget,  saying, "We welcome the Finance Minister’s decision to grant an additional tax deduction of interest of up to Rs. 1 lakh for a person taking  a home loan of up to Rs. 25 lakh for the first time during the financial year 2013-14. This  move will help promote   affordable  housing, and will also widen employment opportunities  in the construction sector.”

Yadav says, “Our global eco-city project which is located on NH-8, alongside the Delhi-Mumbai Industrial Corridor (DMIC), will see a surge in demand as the plans for seven new cities have been finalized.”