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  • Saturday, May, 2024| Today's Market | Current Time: 04:23:12
  • “We hail the maiden budget speech by Hon Finance Minister, Mr. Arun Jaitly, this clearly suggest that development flank taken by the NDA govt.  Real Estate sector for long time was Mr. Pradeep Jain_Chairman_Parsvnath Developers_3ignored with no significant proposals made to spur growth in this sector. For the first time after the slowdown the Union Budget 2014 gives a boost to the real estate sector. We thank Hon’ble Minister for paying attention through legislations like REIT, promoting affordable housing and allocating over USD 50,000 crores towards urban infrastructure.

    Government’s emphasis on PPP shows its commitment towards a collective growth.  Allocation of Rs 7,060 crore to develop 100 smart cities is certainly going to promote the sector on global front. Funding had always been a concern for us as developers. Foreign investors were also shying away due to ambiguity in rules. With implementation of REITs and relaxation in FDI norms, the problem of fund crunch will get mitigated. Cutting down the total built-up area requirement to 20,000 mn sq ft, minimum lock up period to 3 years and a minimum investment of $5 million is indeed a welcome move. Government has also shown its willingness to boost rural housing scheme and low cost housing for urban poor and EWS, with an allocation of Rs 8000 crore and Rs 4000 crore respectively. Introducing the tax Rebate under 80C, an increase by Rs. 50,000 to Rs.1.5 lakhs and housing interest deduction limit extension from Rs. 1.5 lakh to Rs. 2 lakhs will help empower the middle class by giving them more purchasing power.

    Though we have moved ahead in the right direction, a lot more has to be done, primarily awarding an infrastructure status to the real estate sector”

     

     

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