2020 – what a year it was, right? Filled with so many uncertainties, yet possibilities and hope. People looking out through their closed windows, in hope for brighter future. Well, things are changing, the world is getting back to normal, and the economy that was on a downfall showed V-shaped recovery. The real estate sector was one of the important sectors that supported the India economy during the pandemic. This sector contributes 6% in the GDP share which is a lot, if you consider the macro-economic.
The Union Budget for 2022-23 will be presented by the Finance Minister of India on 1st February 2022. Many developers are hopeful that this year’s budget would change the condition of the Indian real estate sector by providing some relief and adjustments from the government’s side.
“At a time when the economy is anxious about recovery due to the Omicron threat, we look forward to a positive approach from the budget. In addition to agriculture, the focus is likely to be maintained on manufacturing, infrastructure, and the real estate sector in the budget. On the wish list will once again be infrastructure status for real estate sector. It has the potential to unlock a host of benefits for boosting foreign as well domestic investment. Reduction in GST rates of key construction material, an extension of credit linked subsidy scheme (CLSS) and enhancement in interest deduction limits on housing loans are also highly desirable,” said Anurag Mathur, CEO, Savills India.
“The country is poised for growth in Life Sciences R&D. A special policy focus on this aimed at attracting investment in R&D real estate will provide a great platform for future. All these will go a long way in attracting investment, accelerating demand, and supporting a higher growth trajectory,” Anurag Mathur added further.
“With signs of revival already visible over the last few months, the realty sector is looking at robust housing demand in 2022 and beyond. While interest rates are already at their lowest, a tax holiday for homebuyers will go a long way in boosting the market sentiment, nudging fence sitters to take a decision. Focus should be given to stalled/ stressed projects, apart from providing impetus to affordable and rental housing as we enter 2022 . This will likely free up capital and provide liquidity to the sector. Additionally, serious thoughts need to be given to GST towards major input materials as the rising cost structure could lead to long-term increase in prices thereby softening demand,” says Farshid Cooper, MD, Spenta Corporation.
“The realty sector in the pandemic has become one of the most trusted investment choices for buyers and investors. The sector, despite early shocks, effectively utilized the emerging trends and customer choices to sustain growth. Technology adoption and digitalisation largely aided growth. We saw how favourable government policies such as stamp duty cuts, low-interest rates on home loans and infrastructure development supported the sector. We expect that the Union Budget will announce customer-friendly steps such as tax reliefs to homebuyers to encourage and empower them. We also expect a single-window clearance mechanism to fast track approvals and avoid project delays. The sector is one of the largest employers and growth engines, and efforts should be made on boosting connectivity, industrialisation and technology penetration across the country to strengthen the investment climate, generate better revenues and accelerate the country’s development,” said Yashank Wason, Managing Director, Royal Green Realty.
