The real estate sector has to be recognised as a priority sector to bring down overall cost of funds and increase financial support, according to Irfan Razack, Managing Director, Prestige Estates Projects.

Razack, who is also the chairman of the Confederation of Real Estate Developers Association of India, an all India body representing developers, felt that the Budget should provide measures to not only help build quality inventory but also encourage buyers to commit to the long term investment of buying a house.

The developers are not looking for sops but pushing for benefits provided directly to the buyers to enhance affordability for them and provide the impetus to buy.

Income tax exemption limits on housing loans must be increased, interest rebate for affordable housing must be provided for larger houses. The limit now is just 30 square metres which is inadequate in most areas. This must be at least doubled or even tripled, he said.

The Smart Cities programme is looking at a host of smaller cities to enhance the quality of living. The entire package must be implemented meticulously to ensure the goals envisaged are achieved, he said.

Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani, said: "the real estate sector certainly awaits an accommodative stance by the government in the upcoming Budget. With the GST slabs fixed at 5 per cent, 12 per cent, 18 per cent and 28 per cent, the real estate sector hopes it is set in the 12 per cent slab. This will reduce the cost of apartments and increase affordability for end users and push sales. Clarity on the composition scheme, VAT paid by developers in under construction projects will help.

Apart from this, we hope the government raises HRA deduction and provides tax incentives for first-time home buyers.

Getamber Anand, President – CREDAI National, said in a statement that with the Centre committed to accelerating housing, real estate sector is finally getting the attention it deserves. Stakeholders are hoping this translates into a positive policy implementation in the context of Prime Minister Narendra Modi’s mandate on housing for all and the regulations under the Real Estate Regulatory law.

“We at CREDAI feel this will be reflected in tax reform, a large part of which directed via the affordable housing segment. A key expectation would be the recognition of the housing sector, specifically the affordable housing segment, as infrastructure which would in turn provide access to institutional finance.”

We now hope that policies such as Section 43Ca, which has provision for taxation in case sale values are less than ready reckoner (guideline) rates, as well as Section 194, which calls for a 1 per cent TDS on properties above ₹50 lakh are removed.

The market has rationalised, post demonetisation, there is no need for such provisions which add cost to the buyer and are unfair.

It is imperative that incentives be provided not just for end users but for institutional and individual investors as well to transform real estate into a viable investment asset.

With the onset of newer investment instruments such as REITs, the sector needs the support of the government for sustained development, he said.

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