Budget 2017 wishlist: Expectations from the real estate sector

Real Estate, Budget 2017
Industry size
India’s real estate market is expected to touch $180 billion by 2020
Source: India Brand Equity Foundation

 

Real Estate, Budget 2017
Employment figure
The Indian real estate sector has backward and forward linkages to approximately 265 ancillary industries. It employs over 50 million people. In India, real estate is the largest employer after agriculture and is slated to grow at 30 per cent over the next decade
Source: National Skill Development Corp
Real Estate, Budget 2017
Contribution to gross domestic product (GDP)
Real estate contributes over six per cent to the country’s GDP
Source: India Brand Equity Foundation

 

  • Budget 2017 to augur well for real estate sector, buyers: Abhishek Goenka

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Further changes with regard to real estate investment trusts (REITs) and the deduction for interest on self-occupied property being increased up to Rs 5 lakh are expected by the real estate sector in Budget 2017, said Abhishek Goenka, partner (real estate), PwC.
Goenka was responding to questions during the Business Standard live chat on what the real estate sector should expect from the coming Budget.
Further, the sector is also expecting a change in the tax deduction limit on housing loans. Goenka said that the sector expects that the limit of Rs 200,000 would be increased to Rs 500,000. This would positively impact the sector.
Good for buyers
The Budget is expected to increase the deduction for interest payments and also reintroduce the standard deduction, said Goenka, adding that these should make the effective cost of borrowing cheaper. With fall in interest rates also, this would overall augur well for home buyers, he said.
GST to have an overall positive impact on sector
The goods and services tax (GST) should have an overall positive impact on the real estate sector, said Goenka, adding that the duplicity of value-added tax and service tax will be eliminated under GST. However, Goenka said that some of the restrictions on credit that are in the model draft law need to be addressed and there should be a seamless flow of credit in order for the sector to truly benefit.Read more

 

 

 

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