Developers Speak : Union Budget 2014 will boost Real Estate Sector
This year’s budget has brought some cheers to the sector and home buyers in India. Makaan.com team finds out the view of Developers, lets see what they have to say about it.
Mr. Owais Usmani, MD, Presidency Infraheights Pvt. Ltd., says “Expectations were high, and finance minister tried to live up to it in the Union budget 2014-15. With the announcement to promote FDI in Real Estate sector, it will definitely boost investment opportunities. Also a welcome step came in the form of approval to Real Estate Investment Trust (REIT) the demand for which developers have been asking for quite a long time. The greatest benefit will be that of fast and easy liquidation of investments in the real estate market unlike the traditional way of disposing of real estate. The Securities and Exchange Board of India (SEBI) would have a control on it making it easier to invest in real estate in the country.”
Mr. Dujender Bhardwaj, Executive Director, ABCZ Builders, says “Policy initiatives that can address the issue of crumbling infrastructure in the existing cities and serve as a guiding light to create 100 new smart cities with an investment of Rs 7060 cr will relieve the burdened metros and Tier I cities. It is therefore essential to formulate budgetary policies with a vision and a plan for next 10-15 years to cope with the demand for increasing urbanization; plan for big FDI sops in real estate will boost the sector. It is important to relieve the main cities from the population burden and also to bring planned infrastructure for the people. Interest on housing loan deduction upto 1, 50,000 to 2, 00,000 is a cumin seed in a camel's mouth for home buyers.”
Mr. Manoj Gaur, MD, Gaursons India Ltd, says; This is a good budget for real estate sector in terms to increase the investment and housing demand. We had a lot of expectations with the government and they did well in some parts like development 100 smart cities with Rs 4000cr for affordable housing to NHB will definitely boost the moral also the government have announced the REITs which will help to reduce the money shortage of developers. The another part which will help the home buyers that home loan rate will reduce soon in near future and currently government have increased the tax exemption limit for interest payment on housing loan Rs 2 lac now. However nothing was mention on single window clearing and infrastructure status.
Mr. Vijay Jindal, CMD, SVP Group, says; Good budget by Finance Minister as hoping by real estate. With these optimistic figures, now we can hope that real estate sector will write a new story of opportunities. The proposed budget is showing brand new sunshine towards positivity. Budget announced Rs 7060 Cr to develop 100 smart cities in India including Rs. 8000 Cr for rural housing scheme. These proposals will strengthen money liquidity as well as employment in the real estate industry. Union budget is also offering low cost housing loan and tax exemption from 1.5lac to 2lac along with motivational Rs 50,000 cr investment for urban infra projects which stimulate buyers and investors to put money in residential and commercial projects that will boost the industry upwards after long term slowness. REITs and FDI is the welcoming steps of the government.