Union Budget 2016- What Does The Real Estate Sector Expect?

The union budget is a greatly awaited annual event which Indians follow closely, as the decisions and allocations announced by the Finance Ministry have great pertinence to both individuals and industries. This year the budget will be announced on the 29 of February by Arun Jaitely, the Finance Minister of India. Developers are expecting a lot from him for the sector and are hoping that the minister will spell out measures to revive the staggering real estate sector in the annual budget.

Union Budget 2016- What Does The Real Estate Sector Expect

Union Budget 2016- What Does The Real Estate Sector Expect

To go hand in hand with how the real estate industry will perform in 2016, market players are waiting with abated breath for some special allocations and some major announcements in the upcoming Union Budget. The developers have a wish-list, here are some changes which the realtors are pitching for-

  • A single window clearance system.

  • Infra status for the sector.

  • Industry status for the real estate

  • Dedicated affordable housing fund.

  • Implementation of REMF and REITs.

  • Time bound incentives for the first time homebuyers.

  • Incentives for certified green buildings.

  • Higher FSI as prevalent in global cities.

A long wish-list is what the developers are waiting to be granted so the real estate market can really pick up. The realty sector is just emerging from a prolonged and painful slowdown, and is looking for any kind of light at the end of the tunnel. This in fact makes the union budget all the more critical and a lot are expected from it.

The real estate sector is the second largest employer in India in the unorganized sector, next to agriculture, and growth in this sector boosts ancillary industries like steel and cement. The government should give ‘infrastructure’ status to the housing sector, a long-standing demand of the developers, which will help them avail loans at a cheaper rate from financial institutions.

In view of the prevailing norm of project delays, the sector is also seeking financial protection for homebuyers. Incentives and special benefits to green and sustainable technology and methods of construction should also be addressed in the upcoming budget. The real estate stands in anticipation of a lot from this year’s budget. There are a few pointers that need immediate attention and that would include awarding the industry status which is long awaited and the single window clearance for faster approvals. So all we can do is wait for the budget and hope it gives the required push to the real estate sector.

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