When one considers the potential that India’s Union Budget has vis-à-vis real estate, in one word, it is ‘immense’. For a sector which is all set to undergo a paradigm change once the lReal Estate Regulatory Act comes in force, this year’s Annual Budget needs to be positive and growth-oriented – especially where real estate is concerned. “In this scenario, everyone from real estate developers and stake holders to home seekers will be looking at the Union Budget announcements by Hon’ble Finance Minister very closely this year, as compared to previous years,” said Niranjan Hiranandani, CMD, Hiranandani Group and President National Real Estate Development Council (NAREDCO – Maharashtra).
The initiative of Prime Minister Narendra Modi, ‘Housing for all Indians by 2022’ is one home seekers across Mumbai, suburbs and the Mumbai Metropolitan Region (MMR) as also the state of Maharashtra, have high expectations from. It is this initiative which needs support from the upcoming Union Budget 2016-17. “Stake holders in real estate will be looking forward to how best can the Budget incentivize and promote “Housing for All Indians by 2022”, said Niranjan Hiranandani.
A large chunk of housing demand in India is for low cost and affordable homes. “If the Annual Budget has provisions which would speed up and promote construction of such homes, the initiative by Prime Minister Narendra Modi will definitely succeed. In this success, we will see the majority of home seekers in the LIG, EWC and affordable categories fulfilling their aspirations and dreams of having a roof over their head,” said Niranjan Hiranandani.
Apart from aspects in the Annual Budget which will make LIG, EWC and affordable homes a reality, there are also expectation that the Budget announcements will create a positive sentiment across the economy, which will enhance the quantum of disposable surplus with potential home buyers in the mid-segment. “This year, the home seekers in the mid-segment will be looking forward to favorable changes in direct and indirect taxation on individuals, as well as direct incentives related to property purchase, which have the potential to create increased fiscal confidence in the mind of home seekers,” he added.
Among the points that mid-segment home seekers will look forward to from the Union Budget this time, around, one is raising individual income tax exemption limit, which will have a positive impact on long-term spending and saving patterns, which will result in additional disposable income. This will increase investment appetite, and given that property is among the foremost investment options for every Indian, it will result in more home seekers looking at fulfilling their dreams. Similarly, if the tax deduction on home loans is increased, it will become an additional incentive for people to buy homes, said Niranjan Hiranandani.
For commercial and the residential mid-segment, positive sentiment has been the underlying trend right from the first half of 2015, it picked up further since beginning of the festive season in 2015. Given this, indications are that 2016 will be a positive year for real estate, said Niranjan Hiranandani. “Real estate stakeholders have high expectations from the upcoming Union Budget 2016-17, I hope the Budget proposals on 29 February will see the Hon’ble Finance Minister Shri Arun Jaitley having good news for all stake holders in real estate – and I expect ‘Housing for All’ to be the keyword for Union Budget 2016,” concluded Niranjan Hiranandani.