Budget 2019 Expectations Highlights: What Real Estate Sector wants
Budget 2019 expectations: In the view of Prime Minister Narendra Modi's 'Housing for All' by 2022 vision, the real estate sector is optimistic about some big announcements by Finance Minister Nirmala Sitharaman.
Budget 2019 expectations: In the view of Prime Minister Narendra Modi's 'Housing for All' by 2022 vision, the real estate sector is optimistic about some big announcements by Finance Minister Nirmala Sitharaman. This will be Sitharaman's first Union Budget presentation. The budget is likely to focus on the rural economy and affordable housing for all. Here are the highlights of budget expectations from the real estate sector:
1. Recognition as Infrastructure: The real estate sector is hopeful that Budget 2019 will grant the infrastructure status to the entire real estate sector. Such status is already granted to affordable housing.
2. Big sops: According to Edelweiss, Realty stocks went up substantially on Tursday on the hope that the government may come up with sops for the sector. Nifty Realty index closed about two per cent higher. Real estate sector stocks of Prestige, Godrej Group, Brigade Group, Sobha Developers, Oberoi Realty, Sun Tech, DLF were among the gainers.
3. Focus on Rural sector: Edelweiss said in a statement: "We think the focus now could shift to the rural/social sector. Income support scheme is already underway and ramp up in affordable housing may also be needed to give a fillip to the beleaguered real estate sector. We do not expect material changes on tax front."
4. Solution to Liquidity crunch: Dr.Niranjan Hiranandani, President, NAREDCO, had earlier told Zee Business Online, "Expectations from industry stakeholders revolve priorly around redressing liquidity crunch- an oil of India’s growth engine. The choking of liquidity is taking a toll on the health of companies and further inflicting financial damage. Quick corrective steps should be undertaken by apex bodies and government to pump in enough liquidity in the system to bring economic growth on track."
5. Tax rationalisation: Hiranandani said, "expectation lies ahead in rationalization of taxes by subsuming stamp duty in the GST, extending Input Tax Credit to the commercial segment, reducing corporate tax, abolishing of MAT to provide thrust to SEZ developments. Another most imperative expectation is to frame National Rental Housing Policy in order to meet the target of Housing for all by. In addition, we expect improvisation in Ease of Doing Business in order to grant quick approvals under one roof and avoid any further delay and discrepancies."