New Delhi | Jagran Business Desk: Amid the downfall in the economy, Finance Minister Nirmala Sitharaman on Saturday will present the Union Budget 2020 in the Parliament and it is expected that the government will announce a slew of measures to revive the real estate that provides a significant contribution to the GDP.
In order to boost the real estate industry, the government need to take some real bold fiscal measures, feel experts. Experts feel an increase in tax benefits is needed to boost the real estate sector as this measure can be a long way for boosting consumer demand.
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President of CREDAI (National) Satish Magar feels that to boost the rental housing, the government need to allow 100 per cent interest on home loans as a deduction for second and third home. He further feel that the benefit under the Section 80IA should be extended to all housing projects.
The real estate sector also need relaxation in GST, experts say, adding that the benefit under the input tax credit (ITC) must be reinstated. The GST must also be charged at 12 per cent along with allowance for land cost of 33 per cent and stamped duty under it should be subsumed.
The government also need to give the real estate sector an industry status so that can help it with finances at a lower cost, especially at times when the availability of funding is a major headwind for the industry.
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Expert also feel that the government need to remove or amend the Section 43 CA as it a barrier to natural price correction and stalled projects effect home buyers, banks and other stakeholders.
The real estate sector is facing a downfall since long. According to a PropTiger report, sales in the residential real estate segment declined 30 per cent during the last October-December quarter on a year-on-year basis across nine major cities in the country.
"Housing sales in India's nine key property markets fell 30 per cent annually during the October-December quarter despite the government launching several measures in the recent past to revive buyer sentiment. As against 91,464 units sold during the quarter last year, only 64,034 homes were sold across the nine markets in Q3 this year," it said.
New project launches in India's nine key residential markets continued to decline, falling 44 per cent year-on-year to 41,133 units during the October-Decmber quarter, primarily on liquidity concerns, the report said.
"Only 41,133 units were launched in Q3 FY20, as against 73,226 units in the corresponding period last fiscal, the report shows. New launches fell across markets, with Kolkata and Gurugram seeing the biggest fall, at 79 and 74 per cent, respectively," it said.
(With IANS inputs)
Posted By: Aalok Sensharma