Breather for builders and buyers: Budget 2019

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The interim budget for FY 2019 – 20 presented today by Minister of Railways & Minister of Coal, PiyushGoyal has received quite a positive reaction from the industry. Most are pleased to see that the government has taken note of the issues faced by the real estate sector and has addressed them systematically. The government has addressed both the demand and the supply side of the sector. “For the demand side, the budget has ensured better liquidity and lower tax burdens on the purchase of homes. The benefit of rollover of capital gains has been increased from one house to two houses, upto INR 2 Crores (once in lifetime), is a tremendous step by the government. For the supply side, the government has taken into consideration the challenge of unsold inventory and has therefore increased the period of exemption for notional tax on unoccupied units from the prevalent 1 year to 2 years. This will give developers a big relief allowing them to concentrate on sales strategies.We consider this budget to be one of the best in many years for the real estate sector.” Shares ShishirBaijal, Chairman & Managing Director, Knight Frank India "Owing to the infrastructure development and housing for all initiatives by the Government, real estate sector has seen a big boost. Finance Minister PiyushGoyal threw some light on the transparency that has come due to the introduction of RERA in the sector. One of the major expectation from the budget was reduction in taxes and I am happy that our government also wants to reduce GST burden on homebuyers.” Expressed Sachin Bhandari, CEO, VTP Realty Amit B Wadhwani, Co-founder, Sai Estate Consultants Chembur Pvt Ltd, “The direct and indirect benefits of the Interim Budget 2019 are likely to bring a profound change in the demand and supply economics of the real estate industry. The extension on period of exemption from levy of tax on notional rent, on unsold inventory from one year to two years, is a welcome move for the builder community. This budget ahead of the election looks like a balanced and inclusive one with thrusting growth and enhancing consumption at its centre” MonuRatra, CEO, IIFL Home Finance Ltd adds, "At first glance, the interim Budget 2019 looks promising particularly for the affordable housing segment. The most encouraging proposal of the interim Budget 2019 is the tax rebate on income of up to Rs.5 lac p.a. It will definitely revive the sentiments of buyers belonging to affordable housing segment to firm up their property purchase decisions by availing home finance on the strength of enhanced disposable income available to them.” Rohit Gera, Managing Director, Gera Developments views, “The government has presented an outstanding budget considering the fact that this was an interim budget.The budget speech finally demonstrates the intent of the government to support the real estate sector. There will certainly be a boost to the consumption on account of the increased disposable income. The fiscal deficit at 3.4% is not a cause for any concern. The clear indication by the finance minister on the GST reduction for housing will be a good boost for the real estate sector.” “The government has also taken a step in the right direction by focusing on physical infrastructure development in terms of airports and seaports, railways and roads which will catalyze the growth of the residential and commercial sector around these projects. While this budget focuses on the overall growth of the economy, we will adopt a wait and watch approach and hope adequate measures are taken to complement their continuous endeavours to boost the real estate sector." States ChintanSheth, Director, AshwinShethGroup. Ashish Puravankara, President, CREDAI Bengaluru, “The GST payments on under construction property has been a major concern for developers and end consumers, with the ministers' assurance to appoint GoMs to look into the same, would be a major relief to the sector. The developer community has also got some respite in the form of exemption from levy of tax on notional rent from one year to two years, which will have a significant impact on the unsold inventory, ensuring more liquidity to the developers.” RohitPoddar, Managing Director, Poddar Housing and Development Ltd, “This is a positive feel good budget which was expected given the 2019 Elections. It is extremely positive for the affordable housing sector and reinforced the Governments continuing the commitment to this important sector. Enhancing the ease of living and consolidating the real estate sector will further provide people with a comprehensive social security and strengthen the government's vision to make India a 10 trillion $ economy.” “Vision to make India a 5 trillion-dollar economy in 5 years and make it a 10 trillion-dollar economy in 8 years through ten-dimensional approach is fascinating, interesting and heart- warming. Government’s vision and according top priority to infrastructure and social infrastructure (roof for every one) development in coming years, as informed in the budget, will greatly enable the Indian real estate sector to contribute substantially to the nation in terms of job creation and GDP growth.” Shares M Murali, Chairman and Managing Director, Shriram Properties.