The forthcoming parliament session that begins today is the most anticipated full Union Budget to be presented by finance minister Arun Jaitely & Narendra Modi Govt., as this Budget is the final one before the general elections due in 2019. The single tax regime GST & RERA have begun to shape up the realty sector with new standards of delivery, accountability and transparency.  And the upcoming Budget 2018 will have to deliver a lot more to the realty sector as an industry that has multiple effects on the economy as a whole.

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Union Budget 2018: For Real Estate & Buyers
By Century Real Estate January 29, 2018

What does the Union Budget 2018 hold for the Real Estate sector & for Buyers?

The forthcoming parliament session that begins today is the most anticipated full Union Budget to be presented by finance minister Arun Jaitely & Narendra Modi Govt., as this Budget is the final one before the general elections due in 2019. The single tax regime GST & RERA have begun to shape up the realty sector with new standards of delivery, accountability and transparency.  And the upcoming Budget 2018 will have to deliver a lot more to the realty sector as an industry that has multiple effects on the economy as a whole.

“Housing for all by 2022” or the Pradhan Mantri Awas Yojana by the Modi government is indeed one of the most ambitious and expected projects that will directly affect realty sector and buyers alike. Quoting Business Today, out of 10 million, 95% of the houses are to be constructed for Economically Weaker Sections (EWS) & Low Income Groups (LIG). So, this coupled with GST rate of 18% may add an upward pressure on the overall cost of a house.

Mr. Ravindra Pai, MD - Century Real Estate Mr. Ravindra Pai, MD Century Real Estate opinionated & is hopeful of more spends towards digitisation of land and/or property records which is in tune with the Digital India vision of PM Narendra Modi.  This, Mr. Pai feels, will considerably reduce litigation, free up more lands in cities to make it more affordable and reduce project timelines which will directly translate to lower costs for the end consumer.

GST in real estate also requires further streamlining as additional levies like stamp duty and registration are still separately charged and should be included within a single tax structure. In addition, taking from the Maharashtra RERA ruling, other state RERA bodies should be widening the RERA laws in their respective states to include other stakeholders like various government approval bodies in a bid to ensure speedy approvals, which as commonly known, is one of the main reasons for construction delays. This would rightfully spread ambit of accountability and ultimately benefit the end user.

Century Blog: Century Real Estate Another valuable provision in the Budget would be the scope for financial institutions to fund land purchase as it will help reduce the costs and make the properties more affordable. Easing the approval process – e.g. site approvals, environmental certificate, and commencement certificate among a host of others, is the need of the hour, as it will greatly reduce the cost of construction and hence cost of the final unit(s).

Century Ethos - BangaloreIn addition, if the government can introduce a centralised agency that will act as the sole custodian of title insurance, it will help speed up delivery and there will also be more transparency and uniformity in the real estate market. Free zoning of land for affordable housing projects, further tax benefits for buyers, especially first time home buyers in Tier 1 cities where property prices are higher, will help boost the PM’s vision of affordable housing for all.

The real estate industry is one of the major contributors of the economy. Hope the forthcoming Budget 2018 is great news to the industry and more specifically to all buyers who as end users should be befitted.

*With inputs & opinions of Mr. Ravindra Pai, MD – Century Real Estate Holdings Pvt. Ltd.

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