The year 2017 was marked by GST and RERA. The twin policy, besides lingering effects of demonetisation, had an adverse impact, in the short run, on real estate sales and overall economy. However, they also brought about consolidation and transparency in the sector. Budget 2018, possibly being the last full Budget before the General Elections, we are hopeful that the Budget will, after granting infrastructure status to affordable housing, will also spread this benefit to the entire real estate sector. Besides, considering the cost of homes in cities, the rebate on home loans must be increased and tax exemptions be given. On the supply side, the government must incentivise builders to undertake more projects in the affordable housing segment.
PMAY provides that if a Private developer on their own land promote the affordable housing then the allottee should get all the benefits prescribed in the scheme. However, other segments like grant to the individual houses in un-planned settlements and grants to the local bodies in upgrading the units are considered and local bodies are made to promote such projects the main area being the affordable housing which may boost the supply line in the housing market has been almost ignored so far. The resources of the vast workplace of disciplined private developers need to be better utilized by making the process liberal and free from bureaucratic complexities.
Presently, the complete absence of the private sector from this segment is a worrying sign. The real estate creates a multiplier effect on the economy and for the economy to create jobs; the real estate sector must take the lead.
The above article is written by Shri P.N.Misra, CMD, Paarth Infrabuild Pvt. Ltd