Budget 2019 expectations: What builders want from FM Nirmala Sitharaman

Budget 2019: While several industries have put forward their demands, the Real estate sector, which is the 2nd largest employment generator in India, has several expectations that it wants fulfilled by FM Nirmala Sitharaman. These include greater impetus for affordable housing and successful implementation of RERA in all states. 

Gaurav Gupta, Director, Omkar Realtors told Zee Business Online that, "This being the first Union Budget by newly appointed Nirmala Sitharaman as FM, her focus area for sure will be to take forward PM’s mission of housing for all by 2022 and hence she should give more impetus for affordable housing, which will result in some momentum in the beleaguered real estate sector. Second, we would want real estate industry to be granted infrastructure status which will ensure easier access to institutional credit and help in reducing developers' cost of borrowing for affordable projects, presently under tremendous pressure owing to NBFC crises."

Gupta added, "At present real estate sector is choking as liquidity is taking its toll on real estate companies financial health and new FM should come out with quick corrective remedies to pump in enough liquidity in the system to get the sector on track. Lastly, as an industry on the tax front if the losses from House Property that can be set off against other heads of income are allowed only up to Rs.2.00 Lakhs. This is an arbitrary restriction and limiting investments into the house property, which should be removed." 

Whereas, Reeza Sebastian, President, Residential Business, Embassy Group, told Zee Business Online that, The realty sector is set to contribute close to 13% of the country’s GDP going forward. In the back of several positive developments in the right direction, it is imperative to address some of the gaps with key focus areas in the upcoming budget:
 
Here is the list of expectations
1. Successful implementation of RERA (Real Estate (Regulation & Development) Act) in all states, ensuring accountability from all stakeholders concerned.

2. Public participation is key to the growth of infrastructure for future. The Government should create awareness among the masses on the need for better infrastructure, even if it means the Pay to use model.

3. Ease the liquidity crunch for making funds more accessible to home buyers and consumers, which will again boost Indian real estate sector.

4. Developers need to seek on an average of 25 approvals for each project which increases project timelines, delivery and the cost significantly. A simplified online approval process with a single window clearance will speed up the process and benefit the sector.

5. Adoption of digital technology will increase transparency and help boost the confidence of global investors in the Indian Real Estate sector. Both government and private parties need to implement the key attributes of block-chain technology to modernise real property conveyance and improve processes for recording deeds and other related instruments.

6. There should be a robust government mechanism which can address issues such as hoarders, black marketers and sand mafia or else cartels will be detrimental to the future of the construction sector.
The much awaited “Industry Status” will simplify the approval process, attract equity investment, improve transparency among other large impetus providing measures to the booming Real Estate sector in the country.