Measures to help sustain developers in a new environment has been delayed
Real Estate

Measures to help sustain developers in a new environment has been delayed

Tata Realty and Infrastructure is a 100 percent subsidiary of Tata Sons. With Budget 2020 around the corner, Sanjay Dutt, Managing Director & CEO, Tata Realty and Infrastructure, shares his expectations:

"Like last year, the Budget may have some high points, but can it trigger GDP back towards 8 percent, revive consumption, sentiments, increase job security, add new jobs, revive investments, investor confidence and restore political leadership confidence. The answer lies in how we act as a nation beyond budget.

The government until now has done everything for the buyers but delayed measures to help sustain in a new environment when it comes to the developers. The Rs 250 billion stress fund and corporate tax reduction were concrete measures. We hope that Budget 2020 brings about tangible gains, revive demand and ensure the flow of liquidity to cater to the demand.

The state governments’ role is equally critical to supplement the Central Government’s efforts.

The Central Government can start with granting industry status to the real estate sector. States can give a single-window clearance mechanism for faster completion of projects. Reduce the cost of doing business besides ease of doing business, reduce the cost of capital to 5 percent to 6 percent, making real estate development more viable in the light of regulated inflation under 4 percent. As seen with several of the previous reforms, the benefits remain to be passed on to the homebuyers and it is crucial for this year’s budget to incorporate some relief for taxpayers by easing the tax on house property income. Increase the deduction for interest on housing loans to at least Rs 5 lakh would also help tremendously in boosting the demand. We are optimistic that the market will gain momentum in a period of about three to five years, provided the government continues the introduction and execution of these economic reforms to enhance the sentiments of the industry and reduce the burden on homebuyers while encouraging investments and development.”

Tata Realty and Infrastructure is a 100 percent subsidiary of Tata Sons. With Budget 2020 around the corner, Sanjay Dutt, Managing Director & CEO, Tata Realty and Infrastructure, shares his expectations: Like last year, the Budget may have some high points, but can it trigger GDP back towards 8 percent, revive consumption, sentiments, increase job security, add new jobs, revive investments, investor confidence and restore political leadership confidence. The answer lies in how we act as a nation beyond budget.The government until now has done everything for the buyers but delayed measures to help sustain in a new environment when it comes to the developers. The Rs 250 billion stress fund and corporate tax reduction were concrete measures. We hope that Budget 2020 brings about tangible gains, revive demand and ensure the flow of liquidity to cater to the demand. The state governments’ role is equally critical to supplement the Central Government’s efforts.The Central Government can start with granting industry status to the real estate sector. States can give a single-window clearance mechanism for faster completion of projects. Reduce the cost of doing business besides ease of doing business, reduce the cost of capital to 5 percent to 6 percent, making real estate development more viable in the light of regulated inflation under 4 percent. As seen with several of the previous reforms, the benefits remain to be passed on to the homebuyers and it is crucial for this year’s budget to incorporate some relief for taxpayers by easing the tax on house property income. Increase the deduction for interest on housing loans to at least Rs 5 lakh would also help tremendously in boosting the demand. We are optimistic that the market will gain momentum in a period of about three to five years, provided the government continues the introduction and execution of these economic reforms to enhance the sentiments of the industry and reduce the burden on homebuyers while encouraging investments and development.”

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