Saurabh Garg, Co-Founder and CBO, NoBroker.com
The introduction of modern tenancy law is a much-needed step in the Indian residential real estate sector. The need for such a reform is immediate, as the current mandate in most state-enacted rent control laws de-incentivise landlords from renting out their flats. The eviction process is also extremely long and cumbersome for homeowners.
To bolster rental housing, the government should look to lower the cost of ownership and introduce measures to improve rental yields from the current 2-4%. Additional levies such as stamp duty and registration should be brought within the ambit of GST, while the GST slab for under-construction properties should also be reduced to bring down the overall cost of ownership for investors. Increasing the limit for principal repayment under 80C from the current INR 1.5 lakh will also provide a big boost to the government’s mission to provide ‘Housing for All’ by 2022.
Self-employed professionals must also be incentivised to take up rental housing to stimulate activity in the real estate space. While the salaried class can claim income tax deductions on HRA, those who are self-employed or draw a lump-sum amount as contractors can only claim up to INR 5,000 a month under Section 80GG. The government should address this irregularity by increasing the rental tax deduction limit for self-employed professionals in the Union Budget 2019.
Surendra Hiranandani, Founder & Director, House of Hiranandani
The Union Budget 2019 has focused on the nation’s growth and brings a positive sentiment to the overall economy. With its focus on the agricultural and rural sector, infrastructure, education, job creation, digital economy etc, it is a budget for all. India’s real estate sector has a reason to cheer as Finance Minister has announced a range of sops for real estate developers as well as homebuyers in the Budget. These measures are expected to boost housing sector as well as investor sentiments in the near future and will provide ample opportunities for the home buyers to invest. On many fronts, this is a favorable and bold budget for the real estate industry. A massive boost for infrastructure will not only benefit the realty sector but also help other industries and create large scale employment in the economy. The government’s focus on infrastructure development of tier 2 and 3 cities will surely make these cities ready for next round of urbanization.
Going forward, we expect continued momentum for Indian realty to attract new investments into the sector and hope that the government brings positive measures for the holistic growth of the Indian real estate sector, imperative to fuel India’s growth engine. In conclusion, it can be said that the budget 2019 has set the stage for the economy to grow positively and achieve new heights through its reform measures.
Sachchidanand Rai, Chairman, Eden Realty Group
This budget is based on the philosophy of reform, perform and transform. Naturally, the focus is more on rural economy, women, youth and infrastructure. Special sops to buyers of affordable housing units of up to 45 lacs will give boost to housing sector in the short term.
Nakul Himatsingka, Managing Director, Ideal Group
The government continues to tread on its stated path. The increase in the limit on interest deduction on affordable housing should give a boost to that sector.
Rishi Jain, Managing Director, Jain Group
The message of the new FM and indeed the Modi 2.0 government is very clear: Make housing affordable and make only affordable housing. Our developer fraternity needs to understand and appreciate the same.
The writing on the wall is that super rich and those in the highest tax brackets should not expect any sops and in fact should cross subsidise the poor. The government is not Anti Rich, but they expect the Rich individuals and corporations to be pro poor. The budget signals the foundation of a truly balanced and self-disciplined society. The boost in affordable housing tax benefit and startup valuations relief is commendable as well. It shows that this is a feedback oriented budget.
Sanjay Jain, Managing Director, Siddha Group
I would like to congratulate the Honourable PM Narendra Modi and FM Nirmala Sitharaman for Budget 2019-20. The full budget presented by FM Nirmala Sitharaman as the first budget of Modi Sarkar 2.0 will give a significant boost to the economy. Keeping in mind the real estate industry, this budget looks hopeful for both real estate developers and home buyers. Tax rebates & interest on housing loan in the affordable housing sector will attract more home buyers. Rental Housing promotion is another advantage to the industry. I am really happy with the better credit tenure by NBFCs as this will benefit the real estate developers. The housing sales is also aimed at getting higher with the increase of carpet area limit.
Abhishek Bhardwaj, Chief Marketing Officer, Shristi Infrastructure Development Corporation Ltd.
The Union Budget 2019-20 has laid major impetus on reforming the economy. A pro-development budget focusing on youth empowerment and infrastructure development, the Modi 2.0 Government’s announcement of increasing the limit on interest deduction on affordable housing, is surely going to promote the affordable housing segment.
Gautam Thapar, CEO, Thapar Builders Pvt Ltd
The honorable finance minister Ms. Nirmala Sitharaman has presented a very impressive budget. Affordable housing is the focus of the government and somehow it’s a positive sign for the real estate sector too. Middle class can dream of an affordable home without worrying much. Easy of business doing is also a huge benefit for everyone. We are looking forward to work with the government in near future to make sure that the Indian real estate sector can boom as soon as possible.