Real estate expectations from Budget 2015-2016

Q: What can the real estate sector expect from the union budget 2015-2016?

Lokesh Patwa,

16th February 2015

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real estate

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housing for all by 2022

budget 2015-2016

expectaion from union budget 2015-16

real estate expectation from budget

increase in service tax

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highlights of budget2015-16

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Replies (13)

Hi, Everyone
Real estate business will be depending on the around area and infrastructure, it will be famous area, So easily budget is day by day increasing.

smith, Hapur

22nd January 2018

Comment

For more details of Budget 2015-16 affects you can click the link as this article give you the detail informaation on it. Budget 2015-16 affects

Deepankar Godbole, Mumbai

8th May 2015

Comment

Hi Sunil,
This simple, but useful move will have a favourable impact on the loan to value ratio, which accidentally will help more individuals in the lower income group to buy their own homes.

This policy, at present, is announced for properties that do not cost more than 10 lakhs, including these charges.

Anirudh Patel, Mumbai

7th May 2015

Comment

Hi Anirudh,
How does REITs help the residential as well as the commercial real estate market in India?

Jerome Fernandez, Mumbai

7th May 2015

Good question Jerome,
This policy can have a brilliant effect, not only on the REIT sector in the new market, but also on the real estate market as a whole, particularly as it presents real estate developers with excellent opportunities to exit the market at the right time and to generate income from their real estate assets. At the same time it will create huge opportunity to the commercial real estate market in India.

Anirudh Patel, Mumbai

7th May 2015

Is increase in service tax going to affect the property cost?

Jerome Fernandez, Mumbai

7th May 2015

Ofcourse, with suggested increase in service tax to 14%, it is going to further affect the price of properties, which can direct to a further decline as well. The repo rate cut has been able to build confidence among builders and developers, as they now hope and expect more such rate cuts in the offing in the near future.

Anirudh Patel, Mumbai

7th May 2015

Hey all,
We have all seen the budget 2015-16 and there was nothing for the real estate sector. So, my question is how Budget 2015-16 affects real estate sector?

Ketalpujara, Mumbai

7th May 2015

Comment

Hi Ketal,
you can not say that there war nothing for the realty market in budget 2015-16. There were some positive signs like "housing for all by 2022" and some policy announcements regarding REITs. On the other hand, the Government confirmed its commitment towards affordable housing and real estate sector in its whole as the RBI announced a repo rate cut of 25 basis points almost immediately after the Budget announcement.

Sunil Joshi, Mumbai

7th May 2015

I appreciate that there is no two ways about it that a cut in home loan interest rates is the best and the most effective way of boosting property sales and to balance out the decline faced by the real estate sector, and the repo rate cut was sure a sign of right purpose.

Ketalpujara, Mumbai

7th May 2015

I heard a lot of this "Housing for all by 2022" What does this mean and how will it help the common people?

Sunil Joshi, Mumbai

7th May 2015

It mainly aims to provide six crore units of urban and rural housing to needful citizens. If the ideas given by government is anything to go by, then the right steps would mean a huge boost to the affordable housing segment of Indian real estate sector.

Ketalpujara, Mumbai

7th May 2015

Let's see how this government taps the public-private-partnership model to achieve the best possible results for the sector as well as for the end-users.

How it affect on loan to value ratio-Inclusion of stamp duty, registration and documentation charges in the cost of houses by banks?

Sunil Joshi, Mumbai

7th May 2015

Construction delays have plagued the sector for quite some time now. Thus expedited clearances for a larger segment of residential projects will be a key for reducing project delays. We further believes that announcement that streamlines the process of obtaining clearances will go a very long way in boosting the real estate industry.

Manisbapu, Mumbai

1st March 2015

Comment

Youa are right Chintak,
The costs of raw materials such as cement and steel need to be brought down or an upper ceiling imposed on their prices. Excise duty toward ready-mix concrete and steel fabrication should be abolished. The interest rates on lending to real estate developers should be brought down so as to help rationalize the cost of construction. This would also help in bringing down property prices.

Rajatrawal, Mumbai

28th February 2015

Comment

Hi,
The government went one step ahead in the Union Budget last time by allocating Rs 4000 crore to the National Housing Bank (NHB) to provide cheaper credit for affordable housing to the deserving. Now it's time to look at the agenda to provide housing for all by 2022. This initiative was welcomed with loud cheer by all and sundry and was hailed as a landmark proposal.

Miraniyatin, Mumbai

27th February 2015

Comment

Buyers and Investors would like to create policies to keep property prices under check. Property values today have reached a sky-high. For denizens, ‘apne ghar ka sapna’ seems to be a distant reality. So govt. should decrease the cost of construction materials and low lending artes for developers.

Chintakpujara, Mumbai

27th February 2015

If the finance ministry raises the individual income tax exemption limit, it will have positive impact on long-term spending and saving patterns. More disposable income increases investment appetite, and property is the foremost investment instrument of choice for every Indian

Rituraj,

26th February 2015

Comment

The property sector in particular is very sensitive to the annual budget, because it has a direct impact on how the common man looks the viability of purchasing a home. Every year sees a new segment of Indians entering the stream of employed and salaried individuals who have this this aspiration. These individuals are just starting out in their careers, and their purchasing power is at the lowest point. Therefore, they are very sensitive to every factor that influences their current finances.

Rituraj,

26th February 2015

Comment

Hi Ritu,
But at the same time, there are those who have already moved up a little further in their careers and have been aspiring to buy a home for a longer time. They have been scanning the market for suitable options and are fairly certain of what they want, and are now awaiting the right combination of factors to help them make the final decision. The industry expectation is that after the annual budget is announced, many of these individuals may press the 'commit' button.

Varun,

26th February 2015

Income tax limit should be minimum upto Rs. 25 lakh turnover for the trader and Rs. 4 lakh minimum for the individual. Instead giving benefits to selected classes, please take some bold steps to revive the sick / economy in totality.

Varun,

26th February 2015

Comment

1. The primary expectation from the Union budget is to provide industry status to the RE sector.

2. Further, the budgetary allocation for the development of Smart cities and the 100 cities that would get the nod are aspects that are being looked upon with immense interest.

3. With affordable housing being a prime agenda of the BJP govt, the emphasis given for the development of affordable housing projects is eagerly expected considering the government's objective to providing housing for all citizens by 2022.

4. Progress of pending infrastructure projects, particularly in major cities are also expected to get sufficient emphasis and budgetary allocation, with streamlining of clearances and approvals.

5. Affordability of home loans is also expected to get a special mention with current interest rates ranging between 10.15 to 10.40 per cent.

6. Reduction in the rates for property registration with slabs set for registration and stamp duty costs is expected to get special mention in the budget.

7. Tax incentives for renting out residential property is expected in the budget which will encourage buyers to invest in rental property in terms of a second home.

8. Developers are expecting faster approvals of their projects which will reduce the time lag of project completion and hence effectively reduce the effective cost for the developer and the price for the end user.

9. Reduction in construction cost by reducing the costs of construction materials and giving approvals for alternative construction materials is expected to be given emphasis as well.

10. Developers are also pressing for single-window clearance for projects which is expected to reduce the effective costs of projects and hence reduce the price burden on buyers.

11. REITs is expected to be made more investor-friendly by reducing the tax burden on the investors.

12. Foreign investors should be encouraged to invest in the real estate sector and so should NRIs by reducing the tax burden and providing tax incentives for major infrastructure projects.The implementation of the Real estate regulatory bill will make investments attractive to foreign investors and NRIs.

Rakesh, Bangalore

23rd February 2015

Comment

There are a number of things which real estate sector expect from this year union budget. To name a few, to make Housing For All a reality property buyers and developers expect there will be move to lower interest rate on home loans or initiative to make home loans affordable. There is also a demand for single tax system or eliminate multiple taxation on property purchase.

Dharmesh Shukla, Bangalore

18th February 2015

Comment

Government should give emphasis to single-window clearance and clarity on Real Estate Regulatory Bill. The long-pending Goods and Service Tax (GST) must also become a reality. An apex body for addressing the concerns of the sector is also the need of the hour.

Murali Krishnan, Bangalore

18th February 2015

Comment