The government can propose “Priority Sector” lending status for home loans up to certain limits in metros and non-metros; metros with higher slab and non-metro with a lower slab. This would help people to get access to funding at a cheap cost. This would spur the growth for real estate industry. Today the industry is hard-hit and availability and access to the funds is very difficult.
RERA, GST have created a huge impact on the real estate industry. Granting “infrastructure” status to the real estate, SEZs and industry parks is likely to spur growth. Last year the government provided Infra status to affordable housing that helped in spurring the demand for Affordable Housing.
The Budget can also look at simplifying complex regulations at the municipal level relating to construction permit and property registration so that in long term it attracts funding from institutional investors.
Today after setting off credit of inputs of material/ service, still the cost is higher than the previous regime. This has significantly hit the builders ability to create or stimulate the demand. The Union Budget can provide for scrapping the stamp duty at state level or merge it with GST. A lower rate of GST, of around 6 per cent, will also help.
(Amit Gossain sharing his expectations from the upcoming Union Budget 2018)
