In the run up to the Union Budget 2018-19 to be presented by Union Finance Minister Arun Jaitley, the market indices Nifty and BSE Sensex has hit record highs on Monday. The positive outlook created by robust Q3 corporate earnings have also helped in the markets rally.
The housing sector had to face the impact of Real Estate Regulation Act (RERA), demonetisation and GST in the past financial but continue to be optimistic on the long term effects of such reforms.
Aditya Kedia, Managing Director of Transcon Developers shares his thoughts on the budget and its impact on realty sector with Corporate Ethos.
1) What are your expectations from the Union Budget 2018-19 due to be presented to Parliament on February 1?
The Union Budget 2018-2019 should focus on normalising GST rates on the construction materials, it should also give a major push to the upliftment of locals in the form of slum redevelopments by lessening the burden of fund raising aspects for such projects. There is also a need to grant an infrastructure status for construction industry which should encompass projects across all price range, this issues should be utmost attention by the Indian government. The reform should further target to bring down the corporate income tax by 20% to 25%. In order to digitise the process of approval the union budget should largely emphasize on incentivizing the local municipal corporation.
2) Do you have any specific policy announcements that FM could consider in the budget?
As far as the buyers and developers are concerned, it is a vicious circle, where-in both go hand in hand. While the welcome reforms like RERA and GST, that have been brought about by the government have benefitted the buyer community at large, it has equally given a tremendous push to the entire realty sector. It has brought about more transparency in the zone, thus benefitting the real estate markets at large. Under the budget, potential home buyers might expect for modifications like less burden of income tax for first-time home buyers and investors, decrease in the HRA limit and high tax savings on home loan and home insurances.
3) What is your outlook for real estate industry in 2018 after an anxiety filled year due to RERA and GST?
Year 2018 definitely looks positive for real estate sector thanks to the welcome reforms like implementation of RERA, which has proved to be a boon to the buyer community. This move is all set to modify the face of the Indian property sector and will bring about a functional, liable and timely project delivery in the coming years as well. Further with its implementation the interest of the end buyers has been safeguarded and this in turn will bring a about a constructive sentiment in the market. The serious real estate players with good customer focus are predictable to get a good augmentation by such welcome reforms in the coming years.
4) Any other company specific projects or issues that they would like to share. Kindly view the same.
As we have couple of Projects like Fortune 500- Tower-1 in Mulund-West, Transcon Ramdev Plaza in Santacruz-West, Another residential project in Mulund-West line-up to be launch in next financial year, All the positive announcement which will boost a under construction projects will help the 2nd largest sector of employment generation in big way.