Realtors disappointed with Budget, say no major announcements to address industry concerns
The real estate industry on Saturday expressed disappointment over the Budget, saying it failed to address huge liquidity concerns in the sector and did not provide any major incentives to boost sluggish housing sales. "The direction of the budget is progressive, however, there are no sector-specific measures for the realty sector," CREDAI National Chairman Jaxay Shah said.
He welcomed the government's decisions to extend the tax benefit to boost demand and supply of affordable housing, but said the industry was eagerly waiting for the rental housing policy, one-time rollover of developers' loan and the Rs 45 lakh limit to be removed in affordable housing definition. NAREDCO President Niranjan Hiranandani said: "The liquidity issue which is a major challenge for the economy in general and real estate in particular, here too one does not see any major relief."
CREDAI President Satish Magar said: "Budget 2020 has not been encouraging for the Indian real estate sector which needs immediate attention from the government." The industry expected more bolder steps from the government to revive the ailing sector such as providing more liquidity for the sector, one-time restructuring of loans, and tax deductions on home loans to give impetus to buyer sentiment, he added.
Anarock Chairman Anuj Puri said the Budget misses on the 'quick fixes' the real estate sector needs urgently and focuses more on a long-term vision. "Apart from the affordable housing push and personal tax relief, no major benefits came in for resolving the current housing mess." Giving Budget a rating of 3 out of 10 for the realty sector, JLL India Country Head and CEO Ramesh Nair said: "The Budget announcement continues to focus on affordable housing and infrastructure, more specifically, urban infrastructure and logistics. However we do not see significant impact on the realty sector."
Anshuman Magazine, Chairman & CEO (India, South East Asia, Middle East & Africa), CBRE said: "Continuing its commitment for further strengthening the national infrastructure till the last mile, the finance minister presented a progressive budget and touched upon every section of the economy." Shishir Baijal, Chairman and Managing Director, Knight Frank India, said that the Budget falls short of real estate sector’s expectations.
"The industry was hoping that the government would come up with measures to boost housing demand. However, the removal of exemptions under the new income tax regime, implying no tax benefit on principal and interest for home loans would be a dampener for the sector," he added. Tata Realty and Infrastructure MD & CEO Sanjay Dutt said: "Overall, we would have liked to see a few of the several long- standing needs of the real estate sector be addressed such as granting of the industry status, one time roll-over (debt), tax on unsold inventory, tax to individual investor for notional income on second or third home, offset of loan interest from income, developer subvention and RERA as single body for customer grievances."
Housing.com CEO Dhruv Agarwala said: "In the 2020 budget the government has decided to help the common man by reducing the income tax burden on individuals. By doing this, the government will definitely help boost consumer sentiment which will give a big fillip to consumption." The budget announcements will give a significant boost to the affordable housing segment, enabling both home buyers and developers to benefit from it, Sobha's VC & MD JC Sharma said.
Puravankara's MD Ashish R Puravankara said the Rs 1.5 lakh deduction in affordable home loan interest extended by another year will bring people closer to their dream of becoming home owners." Sunteck Realty CMD Kamal Khetan said: "Budget predominantly focussed on revitalising the affordable housing which is an attempt to revive the animal spirit in the real estate market. The trickledown effect of the tax saving will mean disposable income in the hands of the common man, thereby increasing consumption and investment in real estate."
Rajan Bandelkar, President (NAREDCO West), said: "The real estate sector had pinned high hopes on the Budget, as the sector has been reeling under pressure and is on the verge of collapse." The sector's key demands such as allowing restructuring of loans and raising the limit of Rs 45 lakh for affordable housing have not been met, he added.
"Extension of timeline for benefit on affordable housing for the developer is in the line of government intention to provide houses to every citizen, said Bijay Agarwal, MD, Salarpuria Sattva. Signature Global Chairman Pradeep Aggarwal said the extension of additional tax deduction on affordable housing by one year is a step in right direction.
Gaurs group MD Manoj Gaur said the budget announcements seems to be mixed bag from real estate perspective. It simplifies income tax regime and provides tax incentives on affordable housing but many long pending demand of the real estate sector has not been met, he added. Raheja Developers CMD Navin Raheja said: "Extension and continuity of sanction and launch limitation from March 2020 to 21 for availing tax free exemption for developers of affordable housing projects is another welcome step together with 1.5 lac exemption to the affordable home buyers."
Runwal group CMD Sandeep Runwal said: "Although the last couple of years have been challenging, we are hoping that the tax relief across income slabs will increase the disposable income of the middle segment group for affordable housing consumption." Investors Clinic founder Honeyy Katiyal said: "Affordable housing needs exclusive attention from the government and developers today as it is one the key building blocks in today’s real estate."
Hawelia Chairman Rattan Hawelia said: "The ongoing challenges and concerns of the struggling real estate sector and affected homebuyers have not been addressed in the budget." PTI MJH PSK MKJ
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)