The real estate sector is expecting sops including benefits for home buyers under Sec80C and extension of current schemes schemes PMAY in the forthcoming Union Budget.
"The Honourable Finance Minister will be presenting the Union Budget next month, and the real estate sector has its list ready to boost demand and bring growth back on track. On top of the list, measures like continuing with the current low interest and easy liquidity regime. A low interest rate is a direct stimulus for investment in real estate.
We would like the budget to deliver on measures to boost demand for the industry like enhance the limit of deduction under section 80C of income tax for principal repayment on home loans, a separate exemption for principal repayment on home loans to incentivise investment in real estate. When it comes to investment in REITs which has become a favoured route to raise funds for developers with renting-bearing commercial properties. The investment of up to Rs 50,000 in REITs should be allowed as a deduction under Section 80C, also the holding period for REITs to qualify for long-term capital gain should be reduced from 36 months to 12 months, a step which will spur retail investment in value creating instrument like REITs," says Krish Raveshia, CEO at Azlo Realty.
According to him, another requirement would be a further enhancement in ease of doing business with limited approvals required to develop a project within a defined timeframe.
"The Finance Minister should extend the current schemes to avail benefits under PMAY CLSS beyond March 2021, and differential pricing between circle rate and agreement value beyond June 2021, steps which will boost demand for real estate and help achieve a faster recovery," Raveshia says.