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Builders say no measures to revive real estate sector
The city’s real estate sector, which is facing a major slowdown, has expressed disappointment over the Union Budget.
The city’s real estate sector, which is facing a major slowdown, has expressed disappointment over the Union Budget.
Though the government did offer some sops for the affordable housing segment, many rued that no concrete measure was taken to revive the sector, which is facing “virtual paralysis”.
Shishir Baijal, chairman and managing director of real estate consultancy firm Knight Frank India said, “The Budget fell short of industry expectations, with no major announcements for accelerating the growth.”
The National Real Estate Development Council (Naredco) had a similar grouse. The real estate developers’ body said there was no adequate thrust given to the housing sector. “The labour-intensive real estate sector which had pegged hopes on additional liquidity infusion, tax reforms and rental housing, were overlooked in the Budget,” said Naredco president Niranjan Hiranandani.
Union finance minister Nirmala Sitharaman that tax benefits in affordable housing for builders and buyers would be extended by a year. However, this was negated by the lack of sops for the sector, said experts. “We didn’t see any measures to make purchase of houses an easy task for buyers, nor did the Budget ease the development as far as the finance or restructuring of loans is concerned. In such a scenario, it is very difficult to produce affordable housing, especially in the Mumbai Metropolitan Region (MMR) and encourage more and more people to buy homes in the affordable segment,” said Nayan Shah, president, Maharashtra Chamber of Housing Industry.
Prices in the real estate sector continue to be exorbitantly high, making properties beyond buyers’ reach. According to research firm Liases Foras, the economic situation has hit the market. “The job market is insecure and hence many avoid taking huge loan liabilities and prefer living in rented houses,” said Pankaj Kapoor, CEO, Liases Foras.
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