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Sunday, February 08, 2015
Narendra Modi Government Measures to give a Boost to the Real Estate Sector
Tuesday, February 3, 2015: Bangalore: The real estate sector is spinning under slump has sought relief from urban development ministry in the upcoming budget. To include few reasons to cheer up for the realty sector by fulfilling the abiding demand, CREDAI (Confederation of Real Estate Developers Association of India) has sent a proposal to finance and urban development ministry to improve infrastructure status for real estate. Furthermore, few developers have personally written request letters to ministries to obtain exemptions from taxes and formalities to attain home loans.
It is evident that, Narendra Modi is introducing new forms to boost real estate sector and to be favorable for India’s economy. His vision towards the growth of India has already received a lot of backing and many companies of foreign countries are showing interest to start their operations and foreign investments. In Gujarat, Modi has confirmed what his approach can do for economic growth and revival.
Modi has promised on tax stability and reforms at top speed with positive regulatory framework and boost to infrastructure to help Indian Economy. To provide housing for all with all the facilities, NDA government intended to build over two crore houses across the country which includes slum dwellers.
Sahel Vice chairman Lotus Greens India Inc. says that; we were awaiting for the upcoming Union Budget as the positive moves taken by the government last year such as approval to REITS by SEBI would give High Net Worth individuals and cash strapped investors and other investors will create new avenues for realty developers. And we predict the attractive tax norms for REITS and other such investment trusts.
The decline in interest rates for home loans will fulfill the gap between demand and supply. The government move towards substantial and green developments will have a positive impact on real estate industry. Bringing down the overall construction cost will reduce the time for project completion, he added.
R K Arora, CMD, Supertech and vice-president, CREDAI (Western UP) said that; “Last budget had brought some relief to the realty market. The sector is reeling under droop and need abrupt step for its recovery. To meet the Narendra Modi’s ambitious plan, there is necessity to bestow special packages for low cost housing. Like before 2008, houses below one thousand sq. feet were exempted from income tax under 80IB but later the relief was removed. There is requirement of such steps to boost low cost housing and easy process to accelerate pace of development.”
Amit Gupta, MD, Orris Infrastructure said to Narendra Modi’s government that the rate of residential sales is high. However, for the boost of realty sector government should take some initiatives as the construction cost is raised by 40 percent in two years and the government taxes have also gone up significantly. This raise will eliminate the scope for reduced costs, in spite of a weak market.
The Finance Minister, Arun Jaitley said to provide the adequate housing by attaining the mission to provide housing for all by 2022, we planned to extend additional tax incentives on home loans which attracts the young professionals to own a home. This scheme covers small towns, cities and metros.