real estate: Real estate agents hail spending of Rs 48,000 for PMAY; unhappy with no tax cut for homebuyers, industry

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NEW DELHI: Property developers on Tuesday welcomed the government’s decision to allocate Rs 48,000 crore in the budget under the Pradhan Mantri Awas Yojana (PMAY) and faster approvals for affordable housing in urban areas, but regretted that no additional tax deduction was allowed on interest paid on home loans.
“The allocation of Rs 48,000 crores for the completion of an 80 lakh house under the PMAY is a welcome step. FM also announced that approvals related to land and construction, especially for housing affordable in urban areas, will be prioritized,” said CREDAI Chairman Harshvardhan Patodia.
He also praised the government’s emphasis on urban planning, especially in Tier II and III cities, in the budget.
Boman Irani – Chairman, CREDAI-MCHI, said that there has been the introduction of a revolutionary reform – a land system and a registration system – which is beneficial for the real estate ecosystem.
“Although real estate analysts and the developer community had been hoping for further discounts given its performance and contribution to the overall economy over the past few months. A simple point that could have cheered homebuyers would be a increase in the tax deduction for interest on home loans,” he added.
NAREDCO Chairman, Rajan Bandelkar said that several provisions of the Union budget will have a positive impact on the real estate sector and cited the example of the focus on the development of logistics parks. “Relaxing land and building-related approvals will help development companies meet delivery deadlines,” he added.
However, Bandelkar said the industry expected more in terms of incentives to boost sales and achieve the dream of housing for all by 2022.
Naredco Vice President Niranjan Hiranandani welcomed the focus on addressing long-standing issues related to reducing land and construction approval times.
“As the population and labor mobility increase, the focus on developing new Tier 2-3 smart cities will lead to a strong boost for real estate infrastructure with a cascading impact on job creation. extra,” he said.
Granting infrastructure status to data centers instead of giving a boost to data localization and protecting data sovereignty is a shot in the arm, he said, adding that it would help the data center industry to benefit from long and cheap credit financing.
Puravankara Ltd MD Ashish R Puravankara said “regarding the housing sector, we are pleased that the government has removed tariffs levied on stainless steel and high steel bars. We hope these savings will be passed on to developers so that end-users can benefit; that is yet to be determined.”
Nitesh Kumar MD & CEO Emami Realty Ltd, said the government’s focus on infrastructure and sustainability will drive real estate growth.
Gaurs Group CMD Manoj Gaur welcomed the focus on affordable housing and urban planning in the budget. “Our long-standing request for industry status for the real estate sector remains unanswered this year and we hope that the authorities will consider it in the years to come,” he said.
Signature Global Chairman Pradeep Aggarwal said the government has focused on affordable housing in this budget.
Nayan Raheja of Raheja Developers said long-standing demand from the real estate sector has not been addressed in the budget. “We have requested industry status for the entire sector as well as one-stop customs clearance to ensure smooth operation, but the government has yet to respond.”
Supertech Chairman RK Arora said: “PMAY has been given due prominence, but largely due to flagship government programs rather than the incentives property development companies were hoping for.”
Chintels MD Prashant Solomon said the government’s focus on increasing urbanization, planning and governance as well as overall development of the sector is a step in the right direction.
“With more emphasis on modernization and upgrading of infrastructure, building urban capacity, in addition to making the data center – part of the infrastructure and strengthening public transport systems, will lead to job creation which will fuel new demand in the real estate sector,” Wave chairman Manpreet Singh Chaddha said.
Hawelia Group Chairman Rattan Hawelia said the budget was disappointing for the property sector. “Major announcements, such as the provision of an input tax credit in the GST, policy reforms for the completion of discontinued projects, tax relief benefits for interest on home loans, etc., are on the whole remained without follow-up.”
RPS Group Partner Suren Goyal said the overhaul of the SEZ Act will also help the economy grow.
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