Real Estate

Budget will improve overall customer sentiment: CREDAI

Our Bureau Pune | Updated on February 01, 2021

CREDAI wants Union government to rationalise and reduce GST for real estate sector. File Photo

CREDAI National has welcomed the budget, saying that the Finance Minister has reassured the country that the government will take all steps necessary for a post-pandemic economic revival and lay’s path towards realising aspiration of making India a $5 trillion economy by 2024.

Satish Magar, President CREDAI National said in a statement “Increased allocation to healthcare with ₹35,000 crore for Covid vaccine in FY 21 – 22 will ensure that the vaccine reaches the most vulnerable sections of our country and it will in turn improve the overall customer sentiment and buying behaviour, aiding the revival of the economy”.

Magar added, “Continuous focus on expanding highways, developing infrastructure, road and rail transport, metro rail projects shall play a crucial role in connecting all corners of the country further boosting demand for housing in these areas, thereby promoting economic activity and job creation.”

Jaxay Shah, Chairman CREDAI National said “This is clearly a budget for growth with next level reforms, focusing on the healthcare, infrastructure and financial sectors and establishes a stable tax regime and higher borrowing for CAPEX. The Budget 2021 – 2022 has laid the stepping stone for India’s post-Covid revival mission and has placed India on a global map in terms of resilient economic growth.”

In line with CREDAI’s recommendation Finance Minister announced an extension of tax holiday for affordable housing projects for another year till March 31, 2022, and deduction on payment of interest to buyers also has been extended for one more year.

According to CREDAI this will boost overall demand for affordable housing, and it has been the fastest-growing segment for the real estate sector.

To increase liquidity and access to required funding for the real estate sector, the announcement of setting-up of a developmental financial institution with Rs 20,000 crore and allowing FDI of up to 74 per cent in insurance, separate administration structure to promote ease of doing business are welcome steps, CREDAI stated.

Announcement of Asset Reconstruction Company and Asset Management Company to help banks tackle bad loans will reduce the pressure on the banking sector as these entities shall now handle NPAs. .

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Published on February 01, 2021
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