With few days left to the introduction of Union Budget 2019-20, the apprehensions and expectations both are high on people’s mind these days. This is so because the realty market and the investors have to bear the brunt of the budget as many plans vanish on the paper while others dream to own home goes haywire.
This being the last budget of the Modi-led Central Government the Indian real estate also is expecting some new relaxations. Here, the term new relaxation is used in the context of the reforms introduced by the Central Government that includes RERA [Real Estate Regulation Act], Demonetization, GST [Goods and Service Tax].
The realtors seek deduction in GST rate and the NAREDO i.e. National Real Estate Development Council being the voice of Indian real estate sector has asked the Narendra Modi-led Union Government to rationalize GST for properties with under-construction status from 18% to 8%.
The developers are also hopeful to get stamp duty under the scope of GST and are also hoping that the Government will introduce incentive rental housing to reach the target of Housing for All by the set deadline 2022.
The sector is also expecting a hike in the interest limit of deduction paid on home by 1 lakh that is currently 2 lakhs and should reach to 3 lakhs if approved in the approaching budget.
A crystal clear policy on rental housing stock and exemption from tax are also on the expecting list. Apart from this, encouragements on new categories of real estate such as affordable housing, warehousing and logistics, co-working spaces, co-living spaces and light industrial spaces will also boost the confidence of both the realty sector and of the investors/prospects.
On a whole, the real estate sector is expecting more positive news from the Union budget 2019-20 especially after the introduction of several reforms that make the property sector more organized than ever before.