Budget expectation 2019-20
“Rationalization of taxes would be the one most important factor that the real estate industry would expect at this point of time from the upcoming Budget. It is not just about reducing taxation rates; rationalization of taxes is necessary as it will create an environment conducive along with the positive sentiment to enable generate new business opportunities across the economy. Among the expected points, I would also add the expectation of bringing Stamp Duty within the purview of GST; Input Credit of Construction against output of Renting; incentivize Rental Housing to meet Housing for All commitment by 2022 and increasing limit of interest deduction, paid on home loan, from 2 lakh to 3 lakh. The real estate industry looks forward to a positive Budget from the Hon’ble Finance Minister.”
Dr. Niranjan Hiranandani, National President, NAREDCO
Pre Budget Expectations Quote
“The government’s progressive initiatives have significantly enhanced the real estate market sentiment. With the union budget just around the corner, we hope to see robust initiatives to boost the industry, which is a huge contributor to the nation’s GDP.Infrastructure being a key driver will further drive momentum in the real estate market. New Inventory that includes affordable housing projects coming up on the suburban tracts will certainly benefit with new and growing infrastructure. This will help in seamlessly connecting different nodes of the city and provide developers and homebuyers with more options to explore.The quantum of unsold residential inventory across micro-markets in the country is looming and the government should continue to focus on the ongoing and upcoming infrastructure projects as it will enhance connectivity thereby attracting homebuyers. Further, rate cuts could help boost the buying sentiment to reduce the existing supply of inventory in the market.Additionally, extending income tax exemption applicable to affordable housing would allow buyers to purchase their dream homes without added financial strain and provisions for single window clearance for housing projects which would ensure speedy completion of projects. The proposal to consider a GST rate cut on under construction properties will also help and this benefit could then get passed on in a transparent manner to the customer.The launch of the smart cities mission (100 smart cities) are in various stages of implementation and with the Government taking adequate various initiatives like these along with incentives for Green buildings and those focused on sustainability, these added incentives / tax subsidies to developers to construct green homes will contribute to sustainable future and greener cities.We hope the government takes into considerations the expectations of the developer and homebuyer’s community and provides respite to the real estate industry.”
Tushad Dubash, Director of Duville Estates
What do you expect from the budget 2019
“In the 2019 Budget, the real estate industry will be looking to the Finance Minister to announce progressive tax SOPs for the Industry as well as homebuyers. Among other things, there are two important aspects that we hope are addressed in the 2019 Budget. Firstly, the cap on deductions available to homebuyers on interest paid for the residential property should be increased from Rs. 2 lakh to Rs. 4 lakh thereby encouraging homebuyers to invest in real estate. Secondly, to address the issue of affordability, Stamp duty should be included in the purview of GST. This has been a longstanding issue for homebuyers and developers alike and we hope that it is addressed as soon as possible.The two aspects hindering the growth of real estate today are affordability and liquidity. Transaction costs for homebuyers have become prohibitive and that is encouraging more and more people to chose renting over buying. With net GST at 12% and stamp duty as high as 6-8% depending on the state, homebuyers are finding it unaffordable to purchase a home. These aspects need a closer look and a different approach is encouraged. In recent times, liquidity has been a significant hindrance for several developers and HFC’s. With tightening norms around home loan eligibility, several people are left out of the ambit and this can be dangerous for the long term growth of a sector that continues to be India’s second largest jobs provider after Agriculture.In some aspects, the promises of 2018 have been met and in some others some work still remains to be done.”
Farshid Cooper, MD of Spenta Corporation
SBI on Jet Airways
“We have seen some media reports on certain issues concerning a Resolution Plan for Jet Airways. This includes speculative reports on pricing relating to any possible investment in the Company”.
“In this connection, SBI would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long term viability of the Company. Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and / or SEBI (takeover code, ICDR regulations etc.) and / or Ministry of Civil Aviation and in compliance with all regulatory prescriptions”
