REALTY: Grant industry status, bring single-window system

Tribune News Service

Vijay C Roy

Chandigarh, January 27

The real estate sector is seeing a strong housing demand from prospective homebuyers. The demand is not confined to top cities alone but transcending to tier-II and tier-III cities. While the sector is looking at robust demand revival, it expects the Union Budget to play a supportive role. Let’s have a look what the realty players expect:

Award industry status

According to real estate players, it is an opportune moment to award industry status to the realty sector so that it can avail cheaper credit. “By contributing 8% to the GDP, the realty sector is a pillar of support for the Indian economy. If the sector gets an industry status, it will be easy for developers to get cheap loans and launch new projects, thereby generating employment and boosting the economy,” said LC Mittal, director, Motia Group.

Single-window clearance

There is a long-pending demand for single-window clearance mechanism. “The realty sector is growing but due to the Covid pandemic, the developers have suffered a lot. The single-window clearance mechanism is needed for timely delivery of projects. We expect some positive steps in this regard,” said Tejpreet Gill, MD, Gillco Group.

Increase rebate on loan

Currently, homeowners can claim a deduction of up to Rs 2 lakh on their home loan interest. This should be increased to build a healthy demand, says Siddharth Maurya, Resource Specialist, Expertise Real-Estate and Fund Management.

GST waiver

A GST waiver for under-construction properties and incentives for private investment in affordable housing sector will be an enabling factor. Easing liquidity and short-term tax holidays can go a long way in boosting overall recovery of the sector.

Slash taxes

Tax relief will lead to more liquidity in the hands of buyers. Nothing could be better if the government slashes tax rates for both buyers and sellers as it will rejuvenate the market as the demand for housing is poised to rise.

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