Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
The Union Budget has enhanced its focus on real estate, particularly in the affordable housing segment.
To stimulate demand in the residential market, the Centre has announced additional deduction in income tax of ₹1.5 lakh for interest paid on housing loans for affordable housing properties (valued up to ₹45 lakh), over and above the exiting deduction of ₹2 lakh.
Further, to narrow the demand-supply gap in the market, the Centre has proposed to open up land parcels of government and public sector undertakings to be utilised for affordable housing and public infrastructure. A Model Tenancy Law would be finalised to boost the rental housing market and improve rental yield in the country.
The real estate sector had been in trouble for a long time. To rectify some of the fundamental issuessuch as unfair practices by developers and lack of transparency, the Centre brought in the much needed reforms and policy changes to make the sector consumer friendly. This includes introduction of GST (Goods and Service Tax), RERA (Real Estate Regulation and Development Act), amendment to black money bill and making REITs (Real Estate Investment Trust) financially viable.
These initiatives dampened the residential property demand initially. Buyers lost the confidence in the market and almost all the realty players including the organised ones such as Prestige Estate Properties and DLF took a hit.
As residential demand fell, margins came under pressure as developers could not increase their property prices. The unsold inventory levels rose to over 6.5 lakh units in 2016. The new product launches also declined; from over 3 lakh units in 2013, it fell to less than 2.3 lakh units in 2017, according to ANAROCK property consultants.
Though the realty market is on a recovery path since 2018, the recent crisis in the NBFC (primary lender for realty players) sector affected the market in FY19. But companies with better leverage fared better.
Though some of the expectations such as infrastructure status to real estate and benefit of input tax credit in the GST have been left out, affordable housing has received sustained focus this time, and this will benefit both property buyers and developers.
Developers have been able to realign themselves to tap into the opportunities available in the affordable and mid-segment housing and improve earnings given the incentives provided already (such as 100 per cent tax holiday for affordable housing projects). For instance, Brigade Enterprises has launched 2 million sq ft (four projects) out of 5.5 million sq ft in the affordable housing segment for FY19.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
With initial public offerings galore, we give you a cheat sheet to score some good grades
Biggest risk in selling funds in a rising scenario is exiting early and missing out on further gains
Go for a standard vector-borne diseases policy if you don’t have a regular health plan
No credit risk is an attraction, but note the nuances
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
While Supreme Court has cleared the way for women seeking longer tenures and senior roles in the Indian Army, ...
Mughal Gardens in the Capital open to visitors — albeit with Covid-19 protocol — for the annual Udyanotsav
Salty, buttery, cheese coated or with maple syrup and bacon — popcorn is lending its adaptable self to gourmet ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor