Builder-buyer concerns juxtaposed with Union Budget 2021-22
The Union Budget 2021-22 is a bit different, at least on the face value. The last quarter sales of Calendar Year 2020, borne out of a pent-up demand that was incentivized with lower interest rate and reduced taxes (in Maharashtra at least) has made the developers realize the importance of the end users coming out in the market. The wants & needs of the two sides are still not on the same page.
Aditya Kushwaha, CEO & Director of Axis Ecorp points out that to boost the real estate industry, the government should consider reducing the taxes on the rental earning, it will help restore confidence among the investors to invest in the real estate and balance out inventory available in the market. Further, the Government should extend capping on PMAY interest subsidy, besides re-look at the timelines of measures that are already announced. Measures like extension of the standing moratorium period on home loans & RERA timelines must be re-looked.
“Affordable housing is very likely to get another booster shot. However, the upcoming budget also needs to focus on the larger market more than ever before, considering that homebuyers and investors need focused tax incentives to gain confidence in real estate investment. I am hopeful that the upcoming Budget will relax income tax norms, offer single window clearance and GST reforms. Additionally, helpful measures like easing out of the liquidity issues that are being currently faced by the sector will boost investment in real estate,” says Kushwaha.
