Real estate sector need Industry status: Shriram Properties

By M Murali

The Housing segment, particularly mid-income and affordable housing, holds a huge potential for the growth of the Indian economy in terms of job creation and overall economic development. Thus, the real estate industry, particularly housing sector, is sensitive to many of the policies that are to be announced in the budget.

The Real Estate industry is eagerly looking for all time high favourable budgetary support.

·  The real estate industry hopes for according “Industry status” which is long awaited one.

·  Having prioritised affordable housing, the Budget shall make liberal allocation of funds specifically for building infrastructure and improving connectivity in the peripheral areas of the cities to augment the housing supply at affordable prices.

·  Approximately 20% -25% of the unit price goes to Government by way of taxes and fees in one form or the other. Stamp duty levied vary from state to state. Stamp duty Taxes/fees shall be rationalised. This will go a long way in reduction of the overall price paid by the home buyer.

·  In the matter approval process, the industry expects Single Window Clarence in the real true sense as the same will go a long way in minimising the turnaround time and reduction in project cost - benefitting the home buyers the price they pay. Digitalisation, minimising human intervention is the answer.

· The budget shall also look into supplementing ownership housing by a strong,  vibrant and sustainable Affordable Rental Housing market with different models to address diverse housing needs for various segments of the population.

I am sure that the Government will appreciate the fact that there are many transparent, credible and well organised players in the real estate sector, who are honestly interested in national growth. They are keen in accomplishing national objective of achieving Housing for All.

In my view, we can expect the re-elected Government to make suitable budgetary announcements to further strengthen the housing initiatives, particularly mid income and LIG/EWS housing.

(Author is Chairman and Managing Director of Shriram Properties Ltd)