With rising COVID-19 cases due to the new Omicron variant, Indian economic recovery may once again take a setback. As lockdowns and restrictions are being imposed by several states to control the COVID-19 cases, real estate sector is expecting the government to increase the capital outlay so that impetus to the economy can be provided.
Few key relaxation in taxes to boost the real estate sector and rise in FDI inflow are among other expectations from the Budget 2022 by the industry.
However, Confederation of Indian Industry president TV Narendran expects the government to focus on investment and infrastructure in the next Budget, rather than focusing on introducing new measures every year. He was of the opinion that the government should nurture employment and focus on increasing consumption.
"I think if we execute what we said we would in the previous years, it would be great progress. If I were to bucket our recommendations -- one is to continue with the government focus on infrastructure and investments because that helps create demand, jobs, and helps drive competitiveness," he said.
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While Grant Thornton Bharat's Partner- Lead Advisory Sumeet Abrol opines healthier banking system are the perfect platforms for the budget to anchor a strategic roadmap for the next decade.
"As the largest employer, after agriculture, having a profound multiplier effect owing to deep linkages with both core and informal sectors, the real estate sector is in a unique position after perhaps a decade. Falling housing inventory levels and a much healthier banking system are the perfect platforms for the budget to anchor a strategic roadmap for the next decade," Sumeet Abrol said.
"A multi-dimensional approach focused on availability of improved & low cost credit, through priority sector lending categorisation of home loans, forward looking FDI regime which allows foreign investment in completed housing & rental housing, and inclusive participation in the start-up ecosystem through a dedicated fund focused on real estate innovations and digitization could go a long way in making the sector future ready," he added.
However, some experts believe the upcoming budget is expected to focus on providing a push to both affordable and rental housing as well as strengthen the existing financing systems to provide liquidity to stuck real estate projects.
Earlier on November 29, the government told the Rajya Sabha that as many as 114.06 lakh houses have been sanctioned, 89.36 lakh grounded (or foundation stone laid) and 52.55 lakh completed or delivered under the Pradhan Mantri Awas Yojana-Urban (PMAY-U).Also, according to the Ministry of Housing and Urban Affairs, under the PMAY-U, around 9.71 lakh houses have been completed and delivered to beneficiaries in Uttar Pradesh, 6.22 lakh in Gujarat, 5.26 lakh in Maharashtra and 4.77 lakh in Andhra Pradesh.