Indian Real Estate's Expectations From Union Budget 2012-13

· Taking cues from the healthy growth of IT/ITES in Tier I cities and its effect on the growth of employment, the Government should actively roll out an incentive-based IT policy (such as STPI) for Tier 2 and Tier 3 towns as well

Residential Real Estate

· Last year, a 1% interest rate subsidy was provided for loans towards affordable housing. The scope of this subsidy should be amplified and broadened to include a wider price band of budget housing to benefit home buyers, especially in lower income groups

· More funds should be allocated to the Rajiv Awas Yojana (RAY) for urban housing targeted at the EWS and the LIG sections

· Enact provisions for Special Residential Zones (SRZs) to incentivise the growth of housing stock at targeted locations

Retail Real Estate

· Relax FDI upto 51% into multi-brand retailing. Indian retail will benefit greatly from increased spending in back-end logistics infrastructure and growth of organised retail

Infrastructure

· Increase infrastructure spending in urban areas with a view to unlock the value of neglected and hidden land assets in suburban and peripheral districts

· Increase outlay to Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

Policy 

· Grant industry status to real estate, since the sector is a major driver for economic growth and generates countless jobs across its various verticals and associated industries

· Relax norms for repatriation of FDI in real estate. The market environment needs to be rendered more investment-friendly

· Enact legislation on REITs to provide exit opportunities to real estate investors

· Bring out strong and convincing evidence of intention to implement the proposed real estate regulator in 2012, and provide single-window clearance for real estate development projects

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India