NOIDA: The real estate reeling under slump has sought relief from the finance and urban development ministry in the upcoming budget.
Getamber Anand, president (elect), CREDAI and ATS group CMD said that CREDAI has sent a proposal to finance, urban development ministry to fulfill the long lasting demands real estate.
On elaborating the details, Anand said that there are many issues have been raised in the proposal. "We want infrastructure status for real estate apart from that there should be exemption from the tax and less formalities to obtain home loans for the buyers," Anand said.
Apart from CREDAI other developers working in Western UP which includes Noida and Greater Noida have sent proposal.
Further explaining the demands, P Sahel, vice chairman of Lotus Greens Developers said, considering the lower growth rate of the economy in the last few years, the forthcoming Union budget is very critical and every industry sector is pinning hopes on it. "Being a part of the real estate industry we hope that the new budget will bring in reforms and roll out more friendly policies, some of these could be reforms for allocation of funds to developers at lower rates, incentivising developers who are adapting practises for sustainable developments etc. For an overall boost to the industry, the government should consider increasing the tax exemption limit for interest amount payable on home loans. Also introduction of single window clearance system and steps towards providing the infrastructure status to the industry will further benefit the sector," Sahel said.
Amit Gupta, MD, Orris Infrastructure said that entire corporate world is eyeing on Narendra modi ever since he was nominated BJP's PM candidate. Now Modi led government is about to present the budget, real estate sector want him to make decisions which can help real estate coming back on track again. Real estate is reeling under slump and the government should consider the point of view of developers and buyers both.
"The real estate sector is burdened with high costs because of which there is little possibility of reduction in home prices in most micromarkets. Construction cost has increased by 40% in two years, while government taxes and premiums have also gone up substantially. This eliminates any scope for reduced prices, despite the weak market. Banks' reluctance to lend to real estate companies has led to increased cost of borrowing, adding to the overall cost," Gupta said.
"The housing industry will revive at a faster pace if the government bring some relief to this budget. We expect relax in tax structure. The real estate generates thousand of jobs and lakhs of people are directly or indirectly associated with the industry so keep it that in mind, we want special package to boost the sector," said JK Jain, CMD, Designarch.