Real estate consultancy Jones Lang Lasalle India expressed that the Government needs to provide impetus to the affordable housing sector, provide faster approvals, encourage foreign investments and make land acquisition process simpler, as it would have a multiplier affect on the economy.
Anuj Puri, Chairman & Country Head, JLL India, feels that in the previous nine-month Budget, the new government outlined its vision for boosting affordable housing. From the upcoming budget, the Indian real estate sector looks forward to provisions that firm this vision.
According to a statement, Puri suggests the Government could consider providing tax incentives to boost rental housing segment. Currently, rental income is treated as normal taxable income. Providing tax breaks specific to rental income will give a significant boost to rental housing segment in the country and help increase rental supply in the metros.
While favouring faster project approvals, which helps beef up the supply pipeline, it brings prices down and ensure that real estate remain viable as a business. Among his other suggestions are approval of Implement Real Estate Regulatory Bill and relaxation of counter-productive clauses In Land Acquisition, Rehabilitation and Resettlement Act.
The Union Budget should address this lacuna by announcing State-level subsidies for development of green spaces so that developers can keep their development cost at par with non-green spaces.
Puri also expressed the need to fast track Real Estate Investment Trusts (REITs) as many overseas investment funds have so far abstained from the Indian real estate market. The new government has the opportunity of making Indian real estate more investment-friendly and attractive by introducing a revised tax code.
He also suggested that the budget needs to lay thrust on increasing foreign investors’ participation in the country’s infrastructure sector.