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Introduction of tax incentives in mid-tier housing can increase home ownership across key projects, as per leading heads of real estate such as Vinod Goenka DB Realty.<br>
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Enhancement in infrastructure seen as a positive move • 25% hike in metro projects is being seen as a growth contributor in the real estate domain. • Mass Rapid Transit System (MRTS) has also witnessed steady investments for greater connectivity. • Smart cities development and design is being spurred by central government’s initiatives, being granted Rs 6,450 crores. • The budget for Swachh Bharat Mission has been increased to Rs 2,650 crores for the year, increasing demand for real estate projects across metro cities. • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme has received greater funding for the year to improve sewage networks and water supply in urban areas.
Housing for all” initiative to spur growth • The government’s housing for all initiative is seen as a growth factor, with 1.5 crores homes built in the last five years. • With upwards of 81 lakh houses with an investment of about 4.83 lakh crores, the project is moving as designed. • Investment into the lower-tier development projects is increasing. • Buyers are insisting on standardization in the development of core housing projects. • Sustainability is a key factor within the housing for all initiative. • Tax benefit of Rs 1.5 lakhs under Section 80 EEA is introduced as a stimulant in the domain.
Benefits for property owners may drive market • Benefits to property owners may increase demand for real estate ownership, especially in the residential domain, per experts such as Vinod Goenka director of DB Realty. • The exemption of notional rent on second self-occupied property can help in driving investment-based purchasing within highly populated cities. Taxpayers may claim two owned houses as self-occupied. • Increase in TDS limit to 2.4 lakhs annual rent, may spur greater investment in the Tier II, III cities. • New tax exemptions on long-term capital gains, may allow owners to buy or construct two residential houses, increasing value-based demand. • Additional tax benefits of INR 1.5 lakhs on home loans, may increase buyer appetite for new home ownership.
More focused approach necessary for demand generation • Industry leaders agree that governing bodies need to institute strategic initiatives for economic development. • Greater incentives for real estate purchasing need to be designed, in terms of tax deductions, exemptions, etc. • Govt. needs to focus on greater employment stimulation to spur middle-income real estate purchasing. • Greater emphasis is needed to enhance macroeconomic growth within key industries such as IT, tech, agriculture and tourism. • Market-focused incentives are needed for international investments into the Indian real estate market.
Areas where continued development is necessary • Industry status should be granted to the real estate space, being one of top employers in the country. • Greater investment is needed to enhance the implementation and monitoring of RERA compliance. • Liquidity crunch needs to be addressed by the governing bodies. • Introduction of tax incentives in mid-tier housing can increase home ownership across key projects, as per leading heads of real estate such as Vinod Goenka DB Realty.
