Budget promises to trigger revival of India’s real estate says Emaar MGF

Monday, 14 July 2014 12:07 administrator

Logo Emaar MGFThe real estate industry seems to be upbeat about new measures.


New Delhi. Many believe the budget highlights the new government's rational approach to policies for taxation, government spending and growth. Among other things, it has paid significant attention to the housing sector.

Emaar MGF spokesperson said, “We believe the measures announced by the Government will fuel the real estate sector’s growth, thereby adding to India’s GDP. The Government’s commitment to allow REITs (real estate investment trusts) is a step in the right direction and long overdue.”

REITs, a prevalent concept internationally, would get a tax pass-through status. Infrastructure Investment Trusts would get tax benefits as well.

Emaar MGF spokesperson further added: “the introduction of REITs will facilitate the way for raising capital without much problem. It will also afford access to retail investors to take advantage from regular income and appreciation benefits from real estate. REITs also have the potential to solve several issues that act as an impediment to growth of the economy pertaining to transparency, credit crunch, organisation of the property market sector and liquidity of real estate assets.”

Relaxation in FDI, smart cities development and incentives for affordable housing is another area where the Government has delivered, creating a great thrust for real estate growth. The government has also afforded relief to the realty business by ensuring certainty in the tax regime.

The positive signs are not limited to the real estate development end only. Measures have been taken to enhance consumption in the housing sector as well. The housing loan rebate on self-occupied property has been increased from Rs 1, 50,000 to Rs 2, 00,000.

It now remains to be seen how fast these initiatives hit the ground in real time.