Well, 2020 was a roller coaster ride for each and every sector of India. However, by the end of 2020 and the arrival of 2021, many developers reported improved sales and demands in the real estate market. The real estate sector which contributes 6% to the GDP share, is hopeful that the previous trend of lower interest rate regime and lower prices will continue in 2022 as well. On 1st February 2022, the Finance Minister, Nirmala Sitharaman will present the Union Budget in the parliament. The developers are looking forward to seeing what this year’s budget has to offer and holds for the real estate sector’s future.
“At a time when the economy is anxious about recovery due to the Omicron threat, we look forward to a positive approach from the budget. In addition to agriculture, the focus is likely to be maintained on manufacturing, infrastructure, and the real estate sector in the budget. On the wish list will once again be infrastructure status for the real estate sector. It has the potential to unlock a host of benefits for boosting foreign as well domestic investment. Reduction in GST rates of key construction material, an extension of credit linked subsidy scheme (CLSS) and enhancement in interest deduction limits on housing loans are also highly desirable,” said Anurag Mathur, CEO, Savills India. Also read – Budget 2022: More Tax Benefits on Housing, Home Loans, and Real Estate Sector
“The country is poised for growth in Life Sciences R&D. A special policy focus on this aimed at attracting investment in R&D real estate will provide a great platform for future. All these will go a long way in attracting investment, accelerating demand, and supporting a higher growth trajectory,” Anurag Mathur added further. Also read – The Year 2022: Profitable Time to Invest in the Indian Real Estate
“With signs of revival already visible over the last few months, the realty sector is looking at robust housing demand in 2022 and beyond. While interest rates are already at their lowest, a tax holiday for homebuyers will go a long way in boosting the market sentiment, nudging fence-sitters to take a decision. The focus should be given to stalled/ stressed projects, apart from providing impetus to affordable and rental housing as we enter 2022. This will likely free up capital and provide liquidity to the sector. Additionally, serious thoughts need to be given to GST towards major input materials as the rising cost structure could lead to a long-term increase in prices thereby softening demand,” says Farshid Cooper, MD, Spenta Corporation. Also read – Union Budget 2022: Real Estate Expectations
“The realty sector in the pandemic has become one of the most trusted investment choices for buyers and investors. The sector, despite early shocks, effectively utilized the emerging trends and customer choices to sustain growth. Technology adoption and digitalization largely aided growth. We saw how favorable government policies such as stamp duty cuts, low-interest rates on home loans, and infrastructure development supported the sector. We expect that the Union Budget will announce customer-friendly steps such as tax reliefs to homebuyers to encourage and empower them. We also expect a single-window clearance mechanism to fast-track approvals and avoid project delays. The sector is one of the largest employers and growth engines, and efforts should be made on boosting connectivity, industrialization, and technology penetration across the country to strengthen the investment climate, generate better revenues and accelerate the country’s development,” said Yashank Wason, Managing Director, Royal Green Realty. Also read – Importance of RERA in Real Estate Industry: 2022