Along with the confederation of real estate developers association of India (CREDAI), individual developers have already written to the ministries about the benefits they are hoping for in the budget.
One of the renowned builder who is eagerly awaiting the 2015 Union Budget says. “We are expecting some good tax standards for real estate investment trusts (REIT), etc. It would be very great if home loan interest rate is reduced, which will boost the sector and help bridge the gap between demand and supply.”
The entire corporate world is looking up to Narendra Modi, ever since he became India’s Prime Minister. With his government about to present the budget, the real estate sector wants him to take decisions that will revitalize it. We’re going through a prolonged fall in price. The government should consider the points of view of both developers and buyers. There is need to control interest rate and create single-window systems.
Expectations from Union Budget 2015:
The industry expects Finance Minister to announce the following:
1. Reduction of multiple taxes.
2. Diminish the cost of borrowing i.e. interest rate.
3. Standardizing the cost of building materials.
4. Making way for the newer investment in the sector by clearing the backlog of pending projects for new investment to come in is also highly anticipated.
The impact of budget on Real Estate Sectors:
1. Higher Tax Exemption on Home Loan interest could also help increase demand for houses.
2. Increase in allocation for the National Housing Bank, and allowing slum development as one of the activities under Corporate Social Responsibility.