Budget 2020: Expectations for the real estate sector

Union Budget 2020: Expectations for the real estate sector

Sunny Kataria, Vice President, OLX Group

By Sunny Kataria

2019 has been a year of hope and despair for the real estate sector. The introduction of RERA Act has brought transparency and trust in the market, which is bringing buyers' confidence in buying and they are coming back to the market.

The recent changes in the affordable housing sector have been tremendously hailed by developers and residents alike. A further boost in the sector will most definitely improve sentiment across the industry. The government’s alternative investment fund (AIF) worth INR 25,000 crore, aiming to offer last-mile funding to stuck housing projects, is expected to bring much relief to one of the biggest problems that have been plaguing the sector. However, it is yet to be seen how the industry will fare in 2020 given the number of funds to settle the issue.

Apart from this, a one-time waiver or restructuring of loans for developers is also a move that is expected to be introduced by the government. The upcoming union budget definitely seems promising for the residential real estate sector, given the crucial curve at which it currently stands.

(Sunny Kataria is Vice President, Real Estate at OLX India