Budget 2015-16: Single-Window Clearance is the need of the hour

Rajiv Mohan, MD, Cherry Hill Interiors Limited

With expected GDP growth to be around 5.9% this fiscal year and with the market conditions, business sentiments and overall outlook in India having improved since the new Indian Government assumed power. Thus, 2015-16 will be a year of growth as Government’s commitment towards reforms has been reflected in its first union budget. Decreasing global oil prices, inflation moving down, exchange rate expected to remain stable, will help the economy to bounce back in growth trajectory.

In our Business, we feel that there is improvement in clients/occupiers sentiments and they are pursuing growth strategies resulting in increased off take of office space in India. This is good news for the sector and Indian economy as a whole, and is an initial indicator of positive business sentiments, economy growth, increased jobs, and in general means Ache-Din for India.

Therefore, we expect government to continue with positive reforms and policies.

As for real estate sector, we expect government to grant real-estate infrastructure status. Also, with ‘Housing for All by 2020’, industrial corridors and affordable housing initiative there is urgent need for a real estate governing body to regulate and streamline processes regarding single window clearances, tax incentives for affordable housing, faster approvals, reduction of corporate tax and Quick and Speedy Implementation of GST with Smoother Tax Credits on Inputs Services.

There need to be clear incentive for Green Buildings and Soft Infrastructure (Corporate Interiors) like increased FAR for Green Building, property tax rebates, tax rebates etc. This shall inspire developers and clients into opting for energy efficient LEED certified buildings & green infrastructure and thereby help minimize carbon footprint of the cities. Cherry Hill has been consistently advocating this line for many years.

Deepak Kapoor, Director, Gulshan Homz

The three most important drivers for the real estate sector this budget will be; RBI’s interest rate cuts, decision on the land acquisition bill and execution of single window clearance system. Whole sector is atleast expecting the rates to come down so as to revive the market.

There is a lot of demand in the market which is being held hard by the affordability factor and we are pretty hopeful that the RBI will bring about a good news for interested buyers.

Mehul Thakur – Director, Viva Homes.

Infrastructural development has been at the forefront of the new government’s agenda on account of its potential to propel the country’s economic growth. India’s real estate market has already seen the positive impact of this. Hence, in order to maintain the growth of the sector, it is imperative to introduce policies and incentives that will boost the sector in the Union Budget 2015-16.

Starting with support to incentivize affordable housing and permit higher tax exemption limits for home buyers, we have great expectations from this budget. The government should also focus on ensuring a separate industry status for real estate which will help boost domestic bank lending, increase Foreign Direct Investment into the sector and ease external commercial borrowing. Single window clearances for the real estate sector will also help in curbing costs and therefore, significantly boost the affordable housing market.

Another focus for the government for 2015-16 should be revising the current FSI rules for ensuring a better vertical growth of the city.