“We  view this Union budget, to be positive for the growth of the economy in general  and  real  estate  sector.  In  the  long  run  it  will  help  in facilitating the growth in the sector.

Introduction of REITs is a big positive move for the commercial real estate market,  which  was  overdue for long. It will be set up in accordance with SEBI  guidelines.  It  has  potential  to  bring  in a large segment of new investors to the market and at the same time government is opening up a new avenue  for  saving  and retirement planning for individuals. The developer fraternity   will   be   benefitted   from   creating  additional  business opportunities and will also improve the business sentiment in the satellite towns of metro and large cities.

The government has provided relief to the business by ensuring certainty in the tax regime. It is a welcome move that no change will be made in the tax laws.  The  proposal  to  strengthen authority for advance ruling in tax is also  one  such  step  in  the same direction. Union Budget had measures to enhance,  the  ease  of  doing  business,  like simplification of rules and compliances  for  businesses.  We  would  have  like to see some of similar measures taken in the Real Estate sector as well, especially to do with the procedures regarding TDS on purchase of property. Industry had expected the Tax  Exemption on home loan to be enhanced to around 3lacs, but it was only increased  to  2lacs,  which  is  a  marginal  change  but never the less a positive change.

Overall  we  feel  budget will support real estate market and boost buyer / investor sentiment.”