The real estate sector has expressed disappointment with the Union Budget 2015 stating that the Finance Minister has failed to give the much-needed impetus to the industry.
Faced with lacklustre demand and rising costs, the sector has been expecting a cut in interest rate on housing loan to spur demand.
“There is not much in the Budget for us. It seems we have to wait much longer for ache din (good days),” said T.V. Murali, president, Confederation of Real Estate Developments Associations of India (CREDAI), Tiruchi Chapter. The investments in the infrastructure sector appear to be long-term measures. It is disappointing that the anticipated interest rate cut on housing loans has not happened.
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The increase in the service tax to 14 per cent would also affect the industry badly, builders felt. “The increase in service tax has come at a time when we were seeking some relief. The move would only increase the cost for customers,” Mr. Murali said.
“We were expecting a big push for the housing sector. But there is nothing in the Budget for us,” said J. Sankaran, former secretary. The increase in service tax would only add to the woes of the industry, which was faced with poor demand, especially from the middle income group. The Finance Minister could have considered steps to reduce the cement price too, he said.