Pre-budget expectations by Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company

The residential sector is seeing a strong bounce back from the coronavirus pandemic crisis. The expectations from upcoming budget are high for the real estate sector and the industry is awaiting big announcements and policy support that can not only revive the sector but also alter the future of the real estate sector. After the adverse effects of the pandemic, the real estate sector has seen steady recovery in the recent past backed by positive government reforms, low interest rates and stamp duty reduction but still a lot more needs to be done to catalyse the sector. More tax sops and higher relief on the home loan rates will woo broader segment of homebuyers and investors to buy property.

The existing tax exemption on housing loans should be raised to give impetus to buyer sentiment. There is specific need for income tax relief on a second home which will benefit home buyers in a big way and also stimulate the real estate sector. The budget can also support the industry by ensuring reduction in compliance issues. It should also strengthen the existing financing systems to provide liquidity as developers need a rational capital flow to keep up the work process.

We are also hoping for GST reforms as this will reduce overall property cost and push demand for homes, granting of industry status to the overall real estate sector and implementation of single window clearance amongst others. We also hope that there will be more announcements to enhance ease of doing business for the developers and are optimistic that the real estate sector is ready for explosive growth in the post pandemic era. These reforms will also be instrumental in attracting investors, institutions and private capital players into India real-estate market. We believe that the government will take appropriate measures to spur consumer demand and give the realty sector a big shot in the arm and affirms robust infrastructure growth. All these measures together will give a big boost to the real estate sector, which in-turn would further intensify revival of the economy going forward.