Boost to real estate sector must for economic growth: experts

The subsequent lockdown brought with it several new problems including stopping of construction activities, unavailability of labour, muted sales and tepid buyer sentiment.

New Delhi: Real estate experts have called for an added impetus to affordable housing in the forthcoming Union Budget for 2021-22 to revive economic growth. Farshid Cooper, Managing Director of Spenta Corporation, also called for addressing liquidity concerns currently plaguing the industry.

He said the government must introduce tax breaks and reduce transaction costs for home buyers. The Indian real estate sector had been facing challenges even before the outbreak of Covid-19 pandemic, said Cooper. The subsequent lockdown brought with it several new problems including stopping of construction activities, unavailability of labour, muted sales and tepid buyer sentiment.

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There have been positive signs since the start of the festive season. But the industry continues to face systemic issues that need redressal. “We hope the upcoming Union Budget of 2021-22 is a comeback budget for the Indian economy,” said Cooper.

Aditya Kushwaha, CEO and Director of Axis Ecorp, said the government should accord industry status to the real estate sector as a whole, including secondary housing and holiday homes. Currently, the same has been conferred only to affordable housing.

This has been a long-pending demand that is expected to help developers raise funds at lower costs.”Housing loan interest rates also need to be reduced to foster demand and sales. We also expect the upcoming budget will factor-in restoration of income tax benefit on a second home which will definitely benefit home buyers in a big way and boost the real estate sector,” said Kushwaha.

The government needs to push active non-banking finance companies for extending finances to the realty sector, he said. Rental income received from any holiday home-based or tourism-centric zones should be free from Goods and Services Tax, said Kushwaha.