On recovery mode, real estate looks for budgetary support, writes PRITAM CHIVUKULA*
The sector is seeing a strong recovery from the pandemic crisis. Residential sales in the top 8 cities have bounced back to near pre-COVID levels. While the real estate sector is looking at a robust housing demand revival in 2022, developers expect the Union Budget 2022 to play a supportive and enabling role.
The upcoming budget should bring a lot of hope to the real estate sector and offer the much-needed push to the infrastructural development of the country.
Falling housing inventory levels and a much healthier banking system are the perfect platforms for the budget to anchor a strategic roadmap for the next decade.
We should look at a multi-dimensional approach focused on the availability of improved and low-cost credit, FDI inflow which allows foreign investment in completing housing, and inclusive participation in the start-up ecosystem through a dedicated fund-focused on real estate innovations and digitization could go a long way in making the sector excel in 2022.
Additionally, developers are hoping for provisions that will benefit the growth that includes the deduction of loss under house property, reduction in the income tax burden on rental housing and long-term capital gains on capital assets, relaxations in provisions for REITs for faster recovery in commercial real estate.
We have also written to the government to urge for a reduction in tax for investments on Real Estate Investment Trusts (REITs) and, also demanded tax-neutral consolidation of businesses through the mergers, in order to help the homebuyers who got trapped in delayed housing projects. (*The author is Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI