Budget 2016 expectations: With the upcoming Union Budget 2016-17, realty experts and the property buyers are once again pinning high hopes from the government. The sector, reeling under pressure over the last one to two years, needs significant push in terms of project approvals, taxation policies, industry status, to name a few. One may opine that these have been the key budget expectations over the last three years but there has been little done so far. With overall sentiments of buyers looking significantly positive and realty experts hoping for lucrative 2016, the budget will set the tone for the realty sector over the year. The five major expectations from Union Budget are:
– The sector expects a single window clearance system from the budget so as to reduce time and cost involved in getting permissions between various departments. It is estimated to account for nearly 25% of the cost paid by the buyers. Constant hindrances including speedy government approvals ultimately result in delayed deliveries.
– Fate of the much-awaited GST Bill is yet to be clear. At present, home buyers need to pay service tax, VAT as well as stamp duty when purchasing flats. In fact, the 14.5 % service tax on under construction properties is a heavy burden on the consumers. The GST will thus replace these multiple taxes and ultimately help consumers.
-The sector also hopes for more clarity on the ‘100 Smart Cities’ scheme and the budget to be allocated for each smart city to be developed. Since the past two budgets, several mega initiatives have been announced with infrastructure being the core of development. Be it smart cities, heritage cities or diamond quadrilateral, these projects once executed will take the country’s infrastructure to another level.
– As stated in the Real Estate Bill, the government needs to set up a Real Estate Governing body at the earliest which will look into the concerns and issues within the sector.
– With real estate sector contributing nearly 7% to the country’s GDP, ‘industry status’ is long pending demand by all.
Sumit Jain, CEO & Co-founder, CommonFloor