With a series of activities happening in the real estate industry, the budget 2017 will be a crucial affair for the realty market. There are huge expectations from the Government which is already making the right moves creating the perfect atmosphere for the industry.
Firstly, the Government needs to put in place the single window clearance for projects. While the demand for housing in metropolitan cities is only on the rise, and the industry is not able to bridge the gap between demand and supply quick enough as the already lengthy process of construction is further increased by the difficulty in obtaining permissions.
Mumbai’s realty market focuses on the mid and the affordable segment of home buyers. The Government can exempt Income tax for affordable homes built for economy weaker sections and low income groups. The reduction of service tax will take off huge load off the shoulders of home buyers as they are already loaded with several other taxes. We expect the Finance Minister to roll out special incentives for first-time home buyers in the affordable housing category which will help in trimming the financial burden on home buyers and further enhance their buying power.
We expect the Government to give a massive push to infrastructure as it one of the key elements to boost economic growth going forward. Infrastructure development will help improve connectivity within the city and bodes well for the real estate projects coming in the suburbs and MMR region which will further spur growth of the sector.
We have a strong trust in Government which has played a vital role in the implementation of RERA along with the Benami Transactions Bill and have also taken a few stringent steps like demonetization. The RERA Act once implemented will boost the entire industry and will definitely prove to be a game changer for the market. The impact of this bill will be profitable to both consumers as well as builders as it will bring transparency in the industry and confidence amongst buyers. These moves by the Government will help to curb many inconsistencies and unfair trade practices bringing professionalism in the sector.
Also, the Government needs to bring in control and stabilize raw material prices as they have a direct impact on final price of the product. Introduction of GST will help in curbing multiple taxes which is a positive sign for the industry and result in buyers coming forward to buy property.
The realty market is growing at a steady pace and there is much more development which will take place if the industry expectations are met from the budget.
The article is contributed by Mr Chintan Sheth – Director, Sheth Corp.