What are expectations from the Budget to catalyse both demand and supply side in real estate?
Budget 2022 should focus on providing better tax rebates and relaxations and subsidy schemes to first time or young homebuyers who have emerged as a significant consumer segment post Covid. On the developer side, the budget should extend input GST credit and sops for developers engaged in affordable housing and rental housing projects
Will the redefining of ‘affordable housing’ boost residential realty especially in metros?
Yes, redefining the pricing parameter of the affordable housing segment from 45 lakh to perhaps upto 1 cr. in metros will definitely boost sales in the as more buyers can benefit from affordable housing schemes
How can the financing systems be strengthened to provide liquidity to developers?
Post pandemic, the focus now should be on completion of stalled projects with a defined framework in place for resolution. Tax exemptions on investments in REITs, increasing the corpus of AIFs such as SWAMIH and extension of credit linked subsidy scheme (CLSS) will help in completion of projects thereby generating liquidity for developers
Rather than piecemeal measures, what are the continuous & consistent government measures that can support real estate?
First, the government must ensure a single window for project approvals which in turn will ensure timely delivery of projects, and Secondly, provide incentives such as tax breaks as well as reduction in stamp duty and registration charges which will increase public spending and lower transaction costs. Some of the major expectations are controlling the material cost, introducing input credit on GST and availability of funds
