The political stability is reviving
sentiments among buyers and corporate & indicating towards the immense
opportunities offered by the Indian market. To maintain the positive sentiment
& to make it an interesting proposition for buyers, investors and
developers; government must take necessary and long pending steps to give the required
boost to sector to start the momentum towards growth and its consequent
multiplier effect on economy.
Some of the important expectations of the
industry from the government are as under:
1. Increase in limit on
interest deduction under section 24 from Rs.150000=00 to Rs.300000=00 to
account for the increased rate of interest and inflation.
2. Grant subsidy on interest
on loans upto 25 lacs with maximum value of unit being 40 lacs.
3. Single Window Clearance
system with immediate implementation of master clearance for height from AAI.
4. Ceiling on applicability
of Environmental clearance to increase from current limit.
5. Reintroduction of section
80IB to promote affordable housing to enable government to achieve its target
of housing for all by 2022.
6. Take on steps to reduce
interest rates to moderate levels of 8-9%
7. Infrastructure status for
affordable housing projects, key benefits of which will include ability of
insurance companies and other long term loans providers to lend to affordable
housing projects and also make investment in the sector.
8. Government to allocate
more funds from Skill Development Fund for construction workers and allied
skills. Skills deficit is a big challenge for the industry today.
9. Allocate more resources
towards development of Housing.
In addition to the above
steps, government must define its long term outlook towards the real estate
sector in terms of policymaking, taxation and incentives for the sector.
The practical problems in the
Land Acquisition act must be addressed and Real Estate Regulatory bill must be
introduced with requisite changes to make the industry more transparent and
accountable along with making the approving authorities accountable for delays.
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