The real estate sector is expecting demand-generating measures from the upcoming Union Budget. Reduction in income tax and removal of tax surcharges for purchasing homes will have a positive impact on the world . Lowering of private tax will increase income for homebuyers. Hiking the two lakh tax rebate on housing loan interest rates can boost demand for housing, especially within the affordable and mid-segment categories. The granting of infrastructure status to the whole land sector would also enable the industry positively. It will bring large scale employment opportunities, create a strong financing pool for developers at lower interest rates and also make projects more affordable for buyers. Additionally GST rationalization for raw materials as well as single window clearance for processes and approvals are critical for the growth of the sector. The government had recently announced Alternative Investment Funds which is a welcome move as it will help in pushing the needle for stalled projects and restoring the buyer sentiment in the market. The budget should look at measures to successfully implement these funds.” - Mr. Rakesh Reddy, Director, Aparna Constructions & Estates Pvt. Ltd.

“Co-living market size across India’s top 30 cities is predicted to grow quite double by 2025 to $13.92 billion from current $ 6.67 billion. In the coming year we'll see this sector growing in terms of innovation and offerings. The business fraternity is expecting more specialise in the housing sector within the union budget 2020-2021. Rental housing and emerging segments like co-living has often not received proper attention in previous budgets. By giving taxation benefits, easy funding processes, availability of lower interest rates for loans and policies aimed toward the expansion of rental housing, can boost the segment and contribute to housing for all by 2022. The existing housing infrastructure in the metros is grossly inadequate to meet the increasing demand triggered by the massive migration of educated youth from tier-II and III cities for higher education and livelihood. In order to address this problem the government shall also take steps to utilize the unsold inventory in favour of the migrant population which makes a huge chunk of today’s workforce.” - Mr Pramod Kumar, Director, Guesture.

“While there are numerous expectations from the upcoming Union Budget 2020, there are a few which we as an industry hope materialises. To bring back growth in the real estate sector, being one of the major contributors to country’s GDP and a major job creator would be one of the focus areas in budget considerations.

Firstly, the government should take more developer and investor-friendly initiatives for the betterment of the real estate market, predominantly for the mid-segment housing. Secondly, the govt must ensure liquidity for the important estate developers. The real estate stress fund from the govt is certainly an enormous boost. However, it might help only the stalled projects, the remainder could only be addressed by the banks and NBFC's.

To ease the liquidity crunch and improve the cash flow in the commercial real estate front, the 18% GST for the properties that are not sold but developed for leasing, should be ideally removed or adequately addressed.

We are also expecting a single-window clearance mechanism which has been a long-pending demand from the sector, which will greatly reduce the project timelines for developers. The sector expects the Budget 2020 to announce industry status to the important estate sector which will further help in raising low-cost funds and make land acquisition simpler..” - Mr. Madhusudhan G., Chairman and MD, Sumadhura Group.

“Last year, Modi 2.0 was extremely supportive of the real estate sector and the budget was instrumental in introducing various schemes, policies and guidelines which were beneficial for both developers and consumers whether it was rate cut of housing interest, NHB guidelines or affordable housing schemes.

The primary concern that must be addressed is that the significant funding crisis. The budget should ease norms to make sure steady flow of investments. Although benefits for affordable housing are provided, developers are unable to receive funding from major banks and NBFCs at lower interest rates.

As we are aware, due to lending market being cautious, mainly NBFC sector and banks, purchase of land has become very difficult since the last one and half years. The Real Estate developer can still use an alternate source of acquisition of property which is Joint Development Arrangement with the owner to avoid large capital commitment. But thanks to lack of clarity on GST, even this alternative source has been totally ineffective and causing huge delay in proper supply of land for developers to hold out the development work. Thus, the impact on other industry employment also will be required to be kept in mind. Hence, few changes in GST can provide an enormous positive impact within the land Industry for all sectors i.e., Residential, Commercial, Retail, IT Offices, Affordable Housing, Ware Housing, etc.,

Waiver on Applicability on GST (if intended to be applicable) on Transfer Development Right (T.D.R.) on Joint Development Arrangement.

Allowing of Input of Commercial GST during construction period against the rent receivables.

Both of the above changes in the nature of clarification or amendment would bring huge positivity and clarity for the real estate industry and the impact can be visibly seen in a short period in the form of commencement of number of projects across the cities.

Industry status to the important estate sector will further boost the increasing of low-cost funds, cut capital costs and make land acquisition easier, passing the benefits to consumers. A single-window clearance system can help to hurry up the execution of projects. We also expect the implementation of land reforms and increased liquidity to NBFCs will cause investors. If land industry gets a lift it'll automatically have a positive impact and can accelerate the economic process of the country and successively the GDP.” - Mr. Bijay Agarwal, MD, Salarpuria Sattva Group.