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 Urban

TRAI Evaluates Telecom Service in Nine Cities

In December 2024, the Telecom Regulatory Authority of India (TRAI) conducted Independent Drive Tests (IDT) across nine cities, highways, and railway routes, including Aligarh, Bhubaneswar, Jammu, Lucknow, Navi Mumbai, Raipur, Siliguri, Thiruvananthapuram, and the Vapi-Rewari Highway. The tests aimed to assess the quality of voice and data services provided by telecom operators such as Bharti Airtel, BSNL/MTNL, Reliance Jio, and Vodafone Idea using various technologies like 2G, 3G, 4G, and 5G. The drive tests evaluated Key Performance Indicators (KPIs) for both voice and data services, includi..

Next Story
Infrastructure Urban

Kolkata to Host North East Trade & Investment Roadshow

Kolkata is set to host the North East Trade & Investment Roadshow on March 7, 2025, at Hotel JW Marriott, starting at 10:30 a.m. Organized by the Ministry of Development of North Eastern Region (MDoNER) in collaboration with FICCI and Invest India, the event aims to attract investors and promote economic opportunities in the North East. The roadshow will be graced by Dr. Sukanta Majumdar, Minister of State for MDoNER & Education, along with Shri Dharmvir Jha, Statistical Adviser, MDoNER, and senior representatives from all eight North Eastern states. The event will feature presentations on ke..

Next Story
Infrastructure Energy

India’s Rooftop Solar Installations Surge by 86% in 2024

India added 3.2 GW of rooftop solar capacity in 2024, marking an 86% increase from the previous year, according to Mercom India Research’s latest Q4 & Annual 2024 India Rooftop Solar Market Report. The surge was largely fueled by the PM Surya Ghar: Muft Bijli Yojana, with the residential sector accounting for 74% of the total installations. In the wind power sector, NLC India and Adyant Enersol (Datta Infra) secured bids in SJVN’s auction for 600 MW of inter-state transmission system-connected wind projects. NLC India won 200 MW at a tariff of Rs 3.74/kWh, while Adyant Enersol secured 112..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?