Monday 10 June 2024

Things that the NDA government should consider and take decisive steps to support and improve the real estate sector | India Sotheby's International realty

 1) Mr Amit Goyal, Managing Director, India Sotheby's International Realty

We congratulate the NDA government on their significant majority win and extend our congratulations to Shri Narendra Modi for being sworn in as India's Prime Minister for the third consecutive time.
As part of its first 100 days agenda, we believe the NDA government should consider and take decisive steps to support and improve the real estate sector. Firstly, the Real Estate (Regulation and Development) Act 2016, a landmark Act enacted by the BJP-led government, should focus on its stricter enforcement. Several states have diluted its provisions, leading to non-compliance with orders passed by Regulatory Authorities. Improved checks and balances are essential to ensure accountability and transparency.
Another important area to address is the significant additional costs, especially the levied taxes on real estate transactions. The government should consider reducing stamp duty and moderating the GST burden on under-construction projects to maintain buying momentum, a key accelerator for GDP growth.
Streamlining project approvals through a single-window clearance system is also critical. Approval delays remain a significant bottleneck, and addressing this will expedite project timelines and reduce costs.
Additionally, increasing income tax exemption limits on home loan repayments and interest, which have not been adjusted since 2014, would provide much-needed relief to homebuyers and stimulate demand.
Last, but definitely not the least, better urban planning is crucial. Cities are under tremendous pressure, and implementing master plans is vital for sustainable development. For instance, despite the Delhi Master Plan MPD 2041 being ready, it has not been notified for over a year. Prompt implementation of such plans is essential to manage urban growth effectively.
2) Mr Badal Yagnik, CEO, Colliers India
The real estate sector expects continuation of structural reforms and policy support from the new Central government. RERA & GST implementation, national policies specific to logistic parks & data centers and overall infrastructure push in the form of National Infrastructure Pipeline & Gati Shakti National Master Plan have instilled a sense of confidence amongst various real estate stakeholders in the last decade. These long-term measures to balance growth while maintaining fiscal discipline will be pivotal to drive equitable public & private investment in the economy. A progressive and an economically viable vision is inevitable if real estate sector is to reach a USD 1 trillion market, forming 13-15% of the country’s GDP by 2030.

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