Real Estate Expectations from Budget 2014 by New Government: Gaurav Gupta, Director, SG Estates Ltd.

The political stability is reviving sentiments among buyers and corporate & indicating towards the immense opportunities offered by the Indian market. To maintain the positive sentiment & to make it an interesting proposition for buyers, investors and developers; government must take necessary and long pending steps to give the required boost to sector to start the momentum towards growth and its consequent multiplier effect on economy.

Some of the important expectations of the industry from the government are as under:

1.   Increase in limit on interest deduction under section 24 from Rs.150000=00 to Rs.300000=00 to account for the increased rate of interest and inflation.

2.     Grant subsidy on interest on loans upto 25 lacs with maximum value of unit being 40 lacs.

3.   Single Window Clearance system with immediate implementation of master clearance for height from AAI.

4.     Ceiling on applicability of Environmental clearance to increase from current limit.

5.     Reintroduction of section 80IB to promote affordable housing to enable government to achieve its target of housing for all by 2022.

6.     Take on steps to reduce interest rates to moderate levels of 8-9%

7.     Infrastructure status for affordable housing projects, key benefits of which will include ability of insurance companies and other long term loans providers to lend to affordable housing projects and also make investment in the sector.

8.   Government to allocate more funds from Skill Development Fund for construction workers and allied skills. Skills deficit is a big challenge for the industry today.

9.     Allocate more resources towards development of Housing.  

In addition to the above steps, government must define its long term outlook towards the real estate sector in terms of policymaking, taxation and incentives for the sector.

The practical problems in the Land Acquisition act must be addressed and Real Estate Regulatory bill must be introduced with requisite changes to make the industry more transparent and accountable along with making the approving authorities accountable for delays.

SG Estates is developing number of Group Housing Projects in Vasundhara, Raj Nagar Extn. and Govindpuram in Delhi NCR. Company has ready to move/nearing possession units/ apartments in SG Indigo Tower, SG Impressions Plus in Raj Nagar Extn., SG Homes in Vasundhara and under construction apartments in SG Grand in Raj Nagar Extn., SG Benefit in Govindpuram.

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