Union Budget should direct red tapism, multiple taxes & credit availability for realty sector.

Harmeet Kaur,

29th January 2015

Real estate News in Ahmedabad

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Replies (7)

Don't worry, the Union budget should bring a significant decrease in interest rates on home loans. The Ministry for Urban Development and Housing had made it clear that it would maintain a sharp focus on reducing home loan interest rates, and the budget will hopefully bring firm evidence of this focus.

Kaushik Bardia,

31st January 2015

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You are right Kaushik. This would also help in bringing down property prices. Higher interest rates that have dampened the consumer sentiment in the past few years. Recent cut in interest rate is not enough and sufficient for home buyers.

Gurmeet,

30th January 2015

Comment

Apart from that realty sector is a capital intensive sector and raising finance for newer projects has been a challenge. Lending rates for real estate development currently range between 12% to 14%, and raising funds through other sources is even more expensive. The interest rates on lending to real estate developers should be brought down so as to help rationalize the cost of construction.

Kaushik Bardia,

29th January 2015

Comment

Apart from controling the input cost of a project, industry players have also suggested that Union Budget 2015-16 should address the tax issues in the sector. In what could be a relief for the home buyers, the developers have recommended the government to remove multiple taxes such as VAT and service tax along with stamp duty and registration charges while purchasing a house.

Gurmeet,

29th January 2015

Comment

Industry experts have suggested that the government will have to take several initiative to improve the sentiment in the real estate sector. Apart from reducing the red tapism that speed up the industry, realty developers expect the government to take steps to control the construction material costs.

Kaushik Bardia,

29th January 2015

Comment

I remember that in 2009, in spite of the continuing negative sentiment based on the global meltdown, the UPA re-election led to an instant impact to the stock and real estate markets. This time however, even though the instruction has been far more decisive, the real estate segment has not seen the turn in customer sentiment and purchase.

Gurmeet,

29th January 2015

Comment

Union Budget is almost 1 and 1/2 months to come but real estate developers are keeping their fingers crossed for Modi's government to announce policy reforms that will change the dynamics of the industry.
Industry players have commonly voiced that the government must announced reforms to cut down on the bureaucratic red tape involved in project development.

Kaushik Bardia,

29th January 2015

Comment