Real estate relying for prudent policy changes on Budget 2021

As the nation is getting ready for the Budget 2021-22, the real estate sector is looking anxiously at the announcements to be made that can help the sector come out of last year’s deficit. Being the largest employer in the country and a contributor in the GDP, the real estate hopes to get some benefit from the announcements.

The affordable segment is dependent on the financial health of the common man, and hence the realtors expect that common man will get some respite that could streamline their funds. The expectation is that the buyers will get loans at affordable rates and the moratorium on loan payments. It is expected that the Government will take last year’s thought and action forward to come up with the announcements that can be implemented in the short term.

Mr Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, says, “Income Tax holiday for Developers in Affordable Housing was given for 2020. After struggling with the pandemic situation for the entire year, it would be encouraging for developers to get this rebate for another 2 years; banks should provide Project based (land & construction) funds at 6%; for first time homebuyers (in Affordable Housing) stamp duty exempt is required pan India; technology import (like aluminum shuttering used in AFW) for construction of affordable housing from other countries should be free from custom duty; stamp duty for land purchase in affordable housing should be reduced or removed for next few years to promote the launch of such homes; and GST on material and services used in affordable housing should be reduced to 50% or brought to single digit. All this is going to support real estate to a big extent.”

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