Will The Post Pandemic Budget Be Helpful In Reviving The Real Estate Sector?
This year, there are many expectations from the budget that will be announced soon by our hon’ble finance minister, Ms. Nirmala Sitharaman. Owing to the pandemic, there’s an urgent need to invest in the economic recovery of the country. The current circumstances have enforced the government to focus towards healthcare, livelihood, infrastructure, and housing.
As the real estate market contributes almost 8% of the country’s economy, and is the second largest employer in the country, it is vital to work towards the revival of the sector. The post pandemic budget should aim at making amendments in the current policies and approaches that would ensure a win-win situation for the buyers as well as developers.
Being a real estate developer, I believe that these are a few steps that could be helpful to the real estate industry:
Interest Deduction: In order to boost housing loans, the government should increase the interest deduction to an amount more than the current, which is Rs. 2 Lac. This amount can be increased to at least 5 Lac to ensure a healthier housing demand.
Stamp Duty Reductions & long term capital gains exemption: Reduced stamp duties and no capital gains would be a benefit for property buyers. This would also result in a boost in the GST collection.
Providing GST waiver: Even if the government provides a limited period of GST waiver, the overall cost of the property will decrease, resulting in an increase in the under construction residential units.
It is important that the post pandemic budget addresses the challenges of the sector. The revival of the real estate industry will surely help the Indian economy grow and prosper.
Well, I am looking forward to a remarkable budget this year that will benefit the real estate industry, as well as the country.