Real Estate Expectations from Budget 2020
Feb 04, 2020 Real Estate News
When Modi government came to power in 2014, the real estate sector was hoping for a turnaround in the market conditions. But despite the efforts with stringent laws, stricter organizations to keep the builders and projects in check, reduction in interest rates and long-term tax benefits, the market is yet to see a revival that the builders and homebuyers have been expecting.
According to the reports, the builders have around 7.8 lac unsold units across nine major cities of the country. With the current pace of sales, it will take the developers around two to two and a half years to completely sell their inventory. The sales in October to December 2019 saw a steep 30 percent drop in sales as compared to previous festive seasons, adding it to the worries of the builders. The current situation with the NBFCs and financial crunch across the country is not helping the builders or the real estate sector at all.
The Indian real estate still stands far from 'Acche Din', and one can only expect the effort and rules from the government's side that can potentially boost the sales in the sector.
We list down the expectations that the builders and buyers have from the Budget 2020
According to the reports, the builders have around 7.8 lac unsold units across nine major cities of the country. With the current pace of sales, it will take the developers around two to two and a half years to completely sell their inventory. The sales in October to December 2019 saw a steep 30 percent drop in sales as compared to previous festive seasons, adding it to the worries of the builders. The current situation with the NBFCs and financial crunch across the country is not helping the builders or the real estate sector at all.
The Indian real estate still stands far from 'Acche Din', and one can only expect the effort and rules from the government's side that can potentially boost the sales in the sector.
We list down the expectations that the builders and buyers have from the Budget 2020
- Expectations for more relief to the buyers who have invested in projects but the builder has gone bankrupt or suffering from extreme cash crunch.
- To increase the demand in the sector, the government can increase the interest tax deduction limit to Rs 2 lacs. The reduction in the tax burden and restructuring the tax slab for the middle-income group will help boost the sales in the sector.
- The GST framework needs restructuring and rework. Even after 3 years of introductions, there is still much confusion regarding the same. An easier framework will attract more buyers.
- Even though the cap of affordable housing has been increased to Rs 45 lacs, most housing units in the metro cities do not fall into the affordable housing segment that fails to give the homebuyer the benefit and tax exemption from the projects.
- The developer's body also believes that taking notional rent on the unsold inventory from the end of the financial year in which the completion certificate has been received will lead to the severe financial implication in the sector.
- The sector needs to be imparted with the industry status as it will help in raising funds and make land acquisitions easy.
- The government also needs to start releasing the funds to the projects from the stress relief fund immediately to help the sector with the financial crunch.
Looking for property portal?
Related Articles
-
-
-
Ready to Move in Flats to Cost More Post GST
Jul 17, 2017 -
GST the New Revolution in the Real Estate Market
Apr 04, 2017
