GURUGRAM/NOIDA: The actual property sector, which had pinned hopes at the Union Budget for buying trade standing and a reduction in GST, is not reasonably making a song praises of the government. Its only solace is the government's continued push for reasonably priced housing.
While the developers have termed the Budget as a "balanced" one and now not a boon for the real property sector, aggrieved traders waiting for the delivery of their properties, say it is going to have very little or no affect on their plight.
Ravish Kapoor, director of Elan Groups, said the government presented many reforms like RERA and GST to the field final year. "This year, we were expecting some more reforms. But the Budget has not given much reason for the real estate sector to smile," he said.
According to Pushpender Singh, managing director of JMS Buildtech, a lower in GST fee within the Budget would have provided the additional spice up to the field. "Change in capital gains tax for equity could accelerate the shift of preference from equity to other investment assets like real estate. This Budget seems to be heading to have minimal direct impact on the real estate industry," he said.
However, Sumit Berry, managing director, BDI Group, welcomed a devoted Affordable Housing Fund that was once announced within the Budget and the government's proposal to build as many as 51 lakh homes in rural India in 2018-19. "These are the right moves towards achieving the vision of housing for all by 2022 and this is also expected to create opportunities for the real estate sector," he said.
Some developers additionally expressed happiness that the government has in any case addressed the ambiguity below Section 43 CA to tax actual property transactions on their actual worth reasonably than the worth arrived at by means of making use of artificially upper circle charges.
"As per new announcement, if the circle rate does not exceed 5% of the transaction value, no adjustment is required towards capital gains on a real estate transaction. It will help in terms of some extra savings if there is parity between the market rates and the ready-reckoner rates," said Arun Chitnis, chairman of ANAROCK Property Consultants.
"Cities which are not under the heavy influence of real estate investors and where prices are rational may benefit from this announcement," he added.
"While we welcome the move, it would have been better to do away with this provision entirely as in many places, the market prices are way below the circle rates . The Budget announced the Affordable Housing Fund under NHB which will further catalyse investments in this sector," said Pankaj Bajaj, president, CREDAI-NCR.
But "much to our disappointment", trade standing and single window clearance gadget will have been the biggest game-changing reforms for actual property sector, which have been now not even mentioned within the funds, said Kushagr Ansal, president, CREDAI-Haryana.
But homebuyers are pessimistic. "The real estate sector is in doldrums, especially in the NCR. The budget will have limited or no impact on the existing projects which are stuck," said Nayantara Prasad, an investor. "It is unfortunate that NCR is full of examples. Buyers are cheated," said Renuka Kulkarni, some other homebuyer.
While the developers have termed the Budget as a "balanced" one and now not a boon for the real property sector, aggrieved traders waiting for the delivery of their properties, say it is going to have very little or no affect on their plight.
Ravish Kapoor, director of Elan Groups, said the government presented many reforms like RERA and GST to the field final year. "This year, we were expecting some more reforms. But the Budget has not given much reason for the real estate sector to smile," he said.
According to Pushpender Singh, managing director of JMS Buildtech, a lower in GST fee within the Budget would have provided the additional spice up to the field. "Change in capital gains tax for equity could accelerate the shift of preference from equity to other investment assets like real estate. This Budget seems to be heading to have minimal direct impact on the real estate industry," he said.
However, Sumit Berry, managing director, BDI Group, welcomed a devoted Affordable Housing Fund that was once announced within the Budget and the government's proposal to build as many as 51 lakh homes in rural India in 2018-19. "These are the right moves towards achieving the vision of housing for all by 2022 and this is also expected to create opportunities for the real estate sector," he said.
Some developers additionally expressed happiness that the government has in any case addressed the ambiguity below Section 43 CA to tax actual property transactions on their actual worth reasonably than the worth arrived at by means of making use of artificially upper circle charges.
"As per new announcement, if the circle rate does not exceed 5% of the transaction value, no adjustment is required towards capital gains on a real estate transaction. It will help in terms of some extra savings if there is parity between the market rates and the ready-reckoner rates," said Arun Chitnis, chairman of ANAROCK Property Consultants.
"Cities which are not under the heavy influence of real estate investors and where prices are rational may benefit from this announcement," he added.
"While we welcome the move, it would have been better to do away with this provision entirely as in many places, the market prices are way below the circle rates . The Budget announced the Affordable Housing Fund under NHB which will further catalyse investments in this sector," said Pankaj Bajaj, president, CREDAI-NCR.
But "much to our disappointment", trade standing and single window clearance gadget will have been the biggest game-changing reforms for actual property sector, which have been now not even mentioned within the funds, said Kushagr Ansal, president, CREDAI-Haryana.
But homebuyers are pessimistic. "The real estate sector is in doldrums, especially in the NCR. The budget will have limited or no impact on the existing projects which are stuck," said Nayantara Prasad, an investor. "It is unfortunate that NCR is full of examples. Buyers are cheated," said Renuka Kulkarni, some other homebuyer.
Balanced but Budget not a boon for realty: Developers
![Balanced but Budget not a boon for realty: Developers]()
Reviewed by Kailash
on
February 02, 2018
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