Interim budget makes realtors unhappy
The interim budget disappointed realty developers and did not provide any relief to the sector. The developers, however, are hoping for an indirect would boost to the housing demand through the steps being taken to push growth in other industries such as automobile. Confederation of Real Estate Developers’ Association of India (CREDAI) Chairman, Mr. Lalit Kumar Jain is of the view, “Nothing for the real estate sector. But the message for RBI is right. If other industry moves and economy grows, it will boost housing demand.”
CREDAI NCR President, Mr. Anil Sharma also expressed his views saying, “The interim budget seems to have overlooked the suggestions forwarded by the real estate developers … the budget was silent on the issues presently being faced by the real estate sector”.
High interest rate and low economic growth have led to a real estate demand slowdown in last few years.
Executive Managing Director (South Asia) of global property consultant, Cushman & Wakefield, Mr. Sanjay Dutt said: “The interim budget 2014 was a disappointment for the real estate sector. It did not take any measure to spur depressed housing sales and ease the financial woes and liquidity crunch of the long suffering sector”.
Anshul Jain, Chief Executive of DTZ India also complained that the interim budget did not have any specific measures specifically for the real estate sector. He went on to add, “Overall, the interim budget presented is expected to prevent any large outflow of dollars out of the country and also help in improving the business confidence levels.”
Anuj Puri, India Chairman and Country Head of Jones Lang LaSalle said that the interim budget was focused on controlling the fiscal deficit and nothing was expected for the realty sector. He added, “The issues pertaining to real estate are deeper and more inherent than those pertaining to consumer durables or the automobile industry. Resolving these issues involves fiscal adjustments to key real estate-linked policies and may even require constitutional amendments. It was therefore self-evident that the current Vote on Account would not hold anything of real consequence in store for the real estate sector.”
CMD CBRE South Asia, Mr. Anshuman Magazine said, “As a Vote on Account, the Finance Minister made all the right pushes for infrastructure, manufacturing, and housing in the Interim Budget.” He further added, “Since the current government presenting the budget will be in house for just about a month-and-a-half, the Finance Minister has, in essence, set the framework for the next government’s fiscal plan.”
Source: The Economic Times
Anil Sharma, Anshul Jain, Anuj Puri, CBRE, Confederation of Real Estate Developers' Association of India, CREDAI, Cushman & Wakefield, developers community, DTZ, Finance Minister, Interim budget, Jones Lang LaSalle, Managing director, Mr. Anshuman Magazine, Mr. Lalit Kumar Jain, property consultant, RBI, Sanjay Dutt, South Asia
