In the General Budget 2018, the government can make several important announcements to boost the real estate sector. Experts say that during the last three years, the government has taken several good steps, but there are still some such problems that are causing the boost in the housing sector. Developers also believe that there is no need to do more, just doing some practical announcements will make the sector a lot of benefit.
What are the possibilities?: In the General Budget 2018, the government can take some important steps to promote rental housing. As the rent exemption limit can be increased on rental income. Now the tax exemption limit on rentals is 30 per cent. It can be extended. Apart from this, the incentive for mass rental projects is also being considered. The meaning of a monthly rental is that the developers who will make projects for rentals only, they are likely to get land and construction on the incentive. According to sources, the budget can also be announced to give incentives to those states who will take necessary steps to give all the approvals related to Residential Projects within a month.
Why is there need?: According to Niranjan Hiranandani, president of the Confederation of Real Estate Developers Associations of India (CREDAI), the government should promote rental housing projects, because the government is focusing on building 2 crore houses, but many people shift from one place to another city because of their work.They should be provided rental housing. According to Hiranandani, in the last few years, several important steps have been taken to promote affordable housing projects, but developers have to wait long for NOCs related to land and construction, due to which the project starts with delay and costs increase.
Real estate in the realm of GST: Gaurav Jain, Vice President, National Real Estate Development Council (NAREDCO) said that real estate should be brought under the purview of GST. This will bring more transparency in the real estate market and the buyers will get the benefit.
What is current?: Last year, the government implemented Real Estate Development Act (RERA) and GST. The real estate sector was in a recession due to the demonetization in November 2016, but due to the RERA and GST, its impact has increased. Most states have applied half incomplete RERA. For this reason, till now the bureaucracy has not improved in the sentiments. At the same time, there was a half-impact of GST on the on-going projects, which caused buyers to appear in dilemma and a decline in sales. Regardless, its unsold inventory decreased in the market. That is, people bought ready-to-move apartments. But new projects have not been launched. Many cheap projects were launched due to the promotion of Affordable Housing in the previous budget.
This is also Hope: Anuj Puri, chairman of Real Estate Consultancy firm Anarock Property Consultants, says that there is a general election in 2019, in which the government’s focus will be on the rural sector. This reduces the risk of Reduction and tax exemption limit in GST rates to the Residential sector.
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