Budget 2012
Developers of special Economic Zone (SEZ) are rebounded by the budget 2012. The builders were expecting some positive announcement from the budget. Though SEZ serves a big responsibility in terms of export and employment, government is not promoting SEZ to the expected level. Due to Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT), investors [...] Continue Reading »
External commercial borrowings (ECBs) in the low-cost housing projects will enhance the real estate activities in the outskirts area of Mumbai. Demand for affordable low budget housing will also increase in Mumbai to avail the 1% interest subvention scheme on housing loan. The higher allotment of funds for the construction of highways and different infrastructure [...] Continue Reading »
After the budget announcement, both the builders and the buyers are worried about the future of the real estate sector. There is no hope generated for the demand supply chain in the realty market. State bank of India is planning to offer lower rate of interest for the existing home loan borrowers. This might improve [...] Continue Reading »
Finance minister has proposed for Tax Deducted at Source (TDS) to all who buys immovable property (other than farm) worth Rs 50 lakh or above in cities and Rs 20 lakh in other areas, must withhold tax of 1% of consideration. And the buyers should provide the proof of remitting the 1% tax in time [...] Continue Reading »
The real estate sector had a number of expectations on the budget 2012. The major highlighted effect of the budget over the real estate sector are : The budget proposed to open the doors for the External commercial Borrowing for specific affordable housing projects. The realty sector is hoping for an improvement of the liquidity [...] Continue Reading »
Real estate sector had a lot of expectation from the budget 2012. However the budget did not accept any of the assumptions of the sector. The leaders are not impressed with the outcome of the budget. The sector only achieved external commercial borrowing for low-cost affordable housing projects. The government took the decision to enhance [...] Continue Reading »
External commercial borrowing (ECB) is encouraged in the budget 2012 for the affordable housing projects. However according to analysts the foreign investors will not be interested to invest in the affordable housing projects due to the low profit margin. Also the cost of Indian rupees is volatile, it will be difficult for individual builders to [...] Continue Reading »
The budget has made the real estate sector disappointed. It is not only disappointing the real estate builders, but there is also no better announcement for the middle range home buyers. With the increase of the service and excise tax, the cost of construction will increase by Rs.50 to Rs.100 per square foot. The only [...] Continue Reading »
External commercial borrowing is allowed for low cost affordable housing projects. This is the only positive gain real estate sector achieved from the budget. However the entire real estate is disappointed after the announcement of the budget. The realty sector still not get the industry status. FDI norms for the real estate kept unchanged. Hence [...] Continue Reading »
As government want to build low cost housing for lower income group, the realty industry wants to consider the construction of low cost housing as priority sector. The industry also wants the reduction in interest rate for the housing loan. To enhance the funding availability for the low cost housing projects, realty builders wants the [...] Continue Reading »
