Budget expectations in real estate sector
Real Estate

Budget expectations in real estate sector

While timely interventions and concessions have helped in increased traction in the real estate sector, additional measures will bolster growth. Ramesh Nair writes.

The government made necessary and timely interventions through liquidity infusion, fiscal support and reform driven investments in the initial leg of relief measures. Further, the Central Bank and the Central Government rolled out other critical measures including loan moratorium, relaxation of NPA classification norms, one-time restructuring of corporate and personal loans (including home loans), etc. These measures and concessions have definitely helped in enhancing consumer sentiment, thus boosting consumption, resulting in increased traction in the real estate sector. While we have seen a continuance of recovery in the fourth quarter which started in Q3 2020, the actual market transaction volumes continue to be lower compared to pre-Covid levels.

In this context, following additional measures will aid in spurring consumption, investment; thus, resulting in a sustenance of a recovery led growth in the next few quarters.

  • Accord industry status to the real estate sector
  • Extension of benefit u/s 80EEA to avail additional Rs 150,000 interest deduction on home loans to the following:
                    Existing homebuyers who have already availed home loans
                    First time homebuyers to include mid segment as well
  • Separate provision for deduction of 'principal repayment' on home loans
  • Restriction on setting off loss from house property against other heads of income at Rs 0.2 million to be removed
  • Reduction in holding period of REITs for long-term capital gains
  • Allow 100%  FDI in completed residential real estate projects through the automatic route
  • Allowing input tax credit on calculation of GST payable in real estate

Author: Ramesh Nair is CEO and Country Head (India), Jones Lang LaSalle (JLL), an American commercial real estate services company.


4th Indian Cement Review Conference 2021

4th Indian Cement Review Conference 2021

17-18 March 

Click for event info

While timely interventions and concessions have helped in increased traction in the real estate sector, additional measures will bolster growth. Ramesh Nair writes. The government made necessary and timely interventions through liquidity infusion, fiscal support and reform driven investments in the initial leg of relief measures. Further, the Central Bank and the Central Government rolled out other critical measures including loan moratorium, relaxation of NPA classification norms, one-time restructuring of corporate and personal loans (including home loans), etc. These measures and concessions have definitely helped in enhancing consumer sentiment, thus boosting consumption, resulting in increased traction in the real estate sector. While we have seen a continuance of recovery in the fourth quarter which started in Q3 2020, the actual market transaction volumes continue to be lower compared to pre-Covid levels. In this context, following additional measures will aid in spurring consumption, investment; thus, resulting in a sustenance of a recovery led growth in the next few quarters. Accord industry status to the real estate sector Extension of benefit u/s 80EEA to avail additional Rs 150,000 interest deduction on home loans to the following:                Existing homebuyers who have already availed home loans                First time homebuyers to include mid segment as well Separate provision for deduction of 'principal repayment' on home loans Restriction on setting off loss from house property against other heads of income at Rs 0.2 million to be removed Reduction in holding period of REITs for long-term capital gains Allow 100%  FDI in completed residential real estate projects through the automatic route Allowing input tax credit on calculation of GST payable in real estate Author: Ramesh Nair is CEO and Country Head (India), Jones Lang LaSalle (JLL), an American commercial real estate services company.4th Indian Cement Review Conference 20214th Indian Cement Review Conference 202117-18 March Click for event info

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000