Realty Sector Expects relaxation from Budget 2014
After the new government was formed at the centre, the real estate stakeholders had high hopes about the changes the government will implement in their favour. With the first Union Budget being presented by the new Government on July 10th, a lot of expectations are in the air. Real estate players are expecting clarity on various issues.
Infrastructural development ranks on top of the list of things the people are expecting from the Union Budget for the year 2014-15, after Narendra Modi declared in his speech that this sector will receive greater focus. This would include the railways, flyovers, and roadways. If this becomes a reality, then it would help the real estate sector reduce the costs involved in developing new projects in close proximity to the city hubs. Also, reduced interest rates are the need of the hour to make the market affordable to the middle income segment.
There are many new initiatives like Real Estate Investment Trusts (REITs) and Foreign Direct Investment regulations that are pending approval, which are keeping investors away. If they are passed, then new funding options will be introduced, reducing bank dependency. Additionally, there is a high expectation regarding revised stamp duty rates. The reduction would help in increasing the government’s revenue.
Source: Silicon India
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