Real estate expects budget to be development-friendly

by Pranay Goyal

The housing sector is one of the largest contributors to the nation’s GDP. The government has taken several measures to address the housing needs of millions by focusing on the ‘Housing for All by 2022’ mission, through movements like RERA, cut in GST, etc.

The burden has shifted to the development side. Due to the stagnation in prices, the margins have further tightened, increasing the number of stuck projects.

In the upcoming budget, we hope the government takes more development-friendly initiatives for the betterment of the market sentiment. Along with the input tax credit, lucrative tax incentives should be passed on towards the development side, which will bring relief across the spectrum of the development cycle and not just sales. This will ultimately impact the very concept of affordable housing.

We believe that the Self-Redevelopment sector under housing is a huge untapped opportunity for Bank & FIs, and the government will continue supporting this revolutionary concept.

The author is the Managing Director of Wedevelopment.