An already comatose real estate industry will have to wait a bit longer for succour.
“With three consecutive bad years for real estate that left developers and other stakeholders gasping for fresh air, the expectations were only building up by the minute for the last couple of months. Unfortunately, the budget has not given them anything to cheer about,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Overall the direction that the Budget has taken is positive with several macro factors making way for a better economic regime.
The Finance Minister proposes to rationalise the capital gains regime for REITs, but has not given any specifics. “This could mean that the sponsor of a REIT may get a one-time capital exemption in exchange for units, but this needs to be confirmed,” said Anuj Puri, Chairman and Country Head, JLL India.
“There is little on easing liquidity for real estate with only partial relief to REITs. All in all, there is practically no silver-lining for stakeholders. With plugging of loopholes in the Benami properties act, stakeholders who used to rely upon it to make money will have a lot to worry about,” explained Baijal.
Anshuman Magazine, Chairman ,CBRE& MD, CBRE South Asia, said: "As far as the real estate and construction sector is concerned, the Budget shows an intention to build six crore houses towards the ‘Housing for all by 2022’ initiative, with two crore urban housing and four crore rural housing.''