Budget 2019: Real estate seeks industry status for ease of doing business

In the first tenure of Narendra Modi government, real estate sector witnessed many developments including the implementation of real estate regulation followed by the Goods and Services Tax to aid structural reforms in the economy, and to boost the ‘Housing for All by 2022’ programme. Now, when Finance Minister Nirmala Sitharaman is holding pre-budget consultations with the representatives of different sectors, real estate has a lot of expectations from upcoming Union Budget 2019, which will be presented On July 5. 

Hopeful of positive developments for the real estate in Budget 2019, Rohit Kharche, Director, The Baya Company, said "With the sector facing tremendous difficulties in recent past, government intervention to addresses the liquidity crunch the sector faces today is critical. Aid in terms of making capital available to the industry, reduction in interest rates for developers as well as home-buyers, clarity on the taxation front, etc. would go a long way in bringing stability to the sector and confidence that the industry is finally steering away from turbulent waters." 

Advocating industry status for the sector, he said "The expected grant of industry status to the real estate sector along with steps being taken in the direction of single window clearance under ease of doing business will tremendously help the sector. It will not only create a more favourable environment for real estate businesses and home buyers but also boost economic growth through the second largest employer in the country.”

Rohit Kharche is of the view that first five years under the Modi government have truly been dynamic with a concentrated focus on infrastructure development, therefore, urgent and equal attention to the real estate sector is needed in this term.

Citing liquidity crunch, Rohit Poddar, Managing Director, Poddar Housing and Development Ltd, also expressed his views on budget expectations, saying "The economy needs urgent stimulus and revival of the real estate sector, which so many other sectors depend upon. A paramount reduction in interest rates will spur a drastic improvement in the existing liquidity crisis and will ensure the money flow in banks and NBFC's.'

"A clear road map for regulations is needed and further corrective measures should be taken to rationalize the GST. Job creation will take place with increased consumption and economic revival," he added.