The real estate sector, which makes a major contribution to the GDP, has some expectations from the new regime at the Centre
Now that parliamentary elections are over, all sections of the society will be looking forward to the new government at the Centre fulfilling their long-pending aspirations and naturally, the real estate sector is no exception. Before we list out these expectations, let us scan the promises of the major political parties and certain candidates in the election fray.Local issues
At the local level, many candidates spoke of the hardships of the common man like poor condition of roads, inadequate drinking water supply, and soaring prices. In metros, the propaganda by almost all focused on the poor living conditions of slum dwellers, lack of housing facilities to the marginalised and inadequate infrastructure.
In the above background, what can be the major expectations of the sector? Some projections can be:Real estate being a major contributor of around 10 per cent to the GDP, any regime will support its further growth, at least till the industry picks up momentum.
This means all tax sops available by way of interest paid on loans, repayments of principal etc., will be continued.
A relook into the Land Acquisition and Rehabilitation Bill, which is yet to become an Act, is a possibility as a realistic balance between the demands of land owners and land using sections need to be made for the smooth implementation of the proposed provisions.
Industry friendly approach to land acquisition may be the cornerstone of any new policy as industrial production needs to be pushed up to jack up growth.
Global warming and climate change will dictate designing/redesigning of houses and construction pattern and as such, eco-friendly innovations in building technology may be boosted by extending concessions in providing financial assistance.
Metros may receive special attention in land use norms. Vertical growth in the central business districts may be promoted as a matter of policy.
Rural and middle income housing may be encouraged.Industry status to real estate sector, which is a long pending demand, is another possibility.
Some of the wish-list of builders and promoters like reduction/ avoidance of service tax, lowering of stamp duty and registration charges, and single window clearance may receive a close look.
FIIs in real estate is likely to get a boost.
The expectations can be sky high, but the challenges will be too. It is perhaps early to expect solutions,
Global warming and climate change will dictate designing of houses and construction patterns in the coming years
Eco-friendly innovations in building technology should get a boost by way of concessions in providing financial assistance.
Industry status to the real estate sector, which is a long pending demand, is a possibility.
Metros should receive special attention in land use norms, and vertical growth in the central business districts should be promoted as a matter of policy.