With Modi Government re-elected in 2019, they are back in
business, there is fresh ray of hope in every sector. Indian Economy has seen
positive momentum in last five years due the reforms done by BJP led
government. With new Finance Minister of India, Government is scheduled to
present the first budget on July 5th 2019, real estate is trembling
due to anxiety along with all other sector.
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| Real Estate Developemnt on MG Road, Gurgaon. |
Real estate seen a complete reform in last five year. Real
Estate sector was all messed up and had no transparency earlier is now have
organized and buyers friendly. The unorganized Real Estate sector has seen the
most promising reform in past five years among all other sectors.
It is important to note that Real Estate is major
contributor to GDP of India and thus GOI must focus on wooing investors and
buyers by dealing properly with shortcomings of the policies made in last five
years.
With major policy changes and introduction of RERA, GST and
affordable housing scheme, real estate sector have been equipped with positive
dimension in the market. The confidence of byers have been remarkably witnessed
with more buyers investing in real estate. The polices like these have been a
boon to the buyers where Developers seek this time from Central Government to
introduce the old demand of industry status which will give major helping hand
to developers in getting easy loans for residential building constructions.
Single window clearance demand for all projects has been also a major point in
the list which real estate sector wishes to have in the coming government
budget to help curbing and recover from the liquidity crunches which developers
are facing.
Liquidity crunch is a major crunch which real estate sector
is facing against smooth and continuous growth of the sector. Increase in the
limit of funding’s by banks will help the sector exponentially to grow rapidly.
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| Photo Cridit: Platinum Towers |
New simplified norms on the usage on Input Tax Credit for
the under construction properties was recently introduced by GST council. This
was praised but the complete reinstatement of Input Tax Crdit will make sure
developers come out of their burden and stress of financial burden.
Additionally it will pass the benefit to home buyers and eventually boost the
sales figure of real estate properties. The cut in repo rate has shown hopes
among home buyers to buy properties with ease. The confidence of home buyers
has been raised as they have relief from paying higher loan EMI.
Government Campaign “Housing for all by 2022” will increase
sales which will nurture the real estate sector more. To achieve this goal the
government can announce more tax benefits and can introduce more changes in tax
slab, doing so will increase potential buyers as it will boost the confidence
of buyers.
It is important to note that Real estate plays a key role in
driving growth in Indian economy. Encouraging moves like these will help
strengthen the economy as well as infrastructural developments resulting in
creating more job opportunities and will also attract huge foreign investment
into real estate sector.
Platinum Towers- Luxury Apartments in Gurgaon
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