On Thursday,
a long waited Union Budget 2014-2015 got nominated in the Parliament, the
realty sector was left in the heave as some its requirements were fulfilled,
while some were left out. Finance Minister Arun Jaitley ‘s initial budget was a
glass half empty and half full with confidences. And yet, some requirements are
left out, “says Lalit Kumar Jain, chairman, CREDAI while describing budget
2014-2015.
Considering the slow-moving economy, pre planned
policy and policy paralysis and high inflation, market experts and researchers
are commending the FM’s inventiveness to address the residential sector in the
budget. Aggregate exemption limit on home loan interest and raising income tax
slab has inculcated self-confidence amongst the primarily time home buyers to
go for property buying.
Just by the advice of property
experts, it is possibly expected that this raise is very minor and it will not
push home buyers to that extent. The deduction of interest on housing loan from
1.5 lakh from 2 lakh is very unacceptable as this will have no impression to
encourage the purchases of luxury homes, this absolution should have gone up to
five Rs lakh in its place, says MD of CBRE South Asia Pvt. Limited, Anshuman
Magazine. Another declaration which raised the excitement bar in the realty
sector was brief introduction of REITs in the country. With this, leading
developers will be able to fund from alternate channels and it will facilitate capital
markets in the nation and provide stakeholders with exit options.
It allows FDI in small housing
projects of 20,000 square meter in place of 50,000 will distribute more funding
options for real estate builders for tier –II and tier-III cities where a lot
of potentials left to be explored. But at same time, the healthy demand for the
industry status to the realty sector went unattended. We are very pleased that
the stable government plans effective steps to operationalize the SEZs, to
revive the investors’s expectations and interests to develop first rate infrastructure
and to effectively and competently use the available unutilized land. Hence, Indian Property is very attractive and lucrative option for potential local and global investors.
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