Budget Expectations 2016 by Mr Chintan Sheth - Director, Sheth Corp

The budget 2016 will be a crucial affair for the realty market. There are huge expectations from the Government which is already making the right moves creating the perfect atmosphere for the industry.

Firstly, the Government need to put in place the single window clearance for projects. While the demand for housing in metropolitan cities is only on the rise, and the industry is not able to bridge the gap between demand and supply quick enough as the already lengthy process of construction is further increased by the difficulty in obtaining permissions.

Mumbai's realty market focuses on the mid and the affordable segment of home buyers. The Government can exempt Income tax for affordable homes built for economy weaker sections and low income groups.

The reduction of service tax will take off huge load off the shoulders of home buyers as they are already loaded with several other taxes.

We have a strong trust in Government that the real estate bill which was the most awaited and discussed shall pass by 2016. This will boost the entire industry and will definitely prove to be a game changer for the market. The impact of this bill will be profitable to both consumers as well as builders as it will bring transparency in the industry and confidence amongst buyers.

Also, the Government needs to bring in control and stabilize raw material prices as they have a direct impact on final price of the product. Introduction of GST will help in curbing multiple taxes which is a positive sign for the industry and result in buyers coming forward to buy property.

The realty market is growing at a steady pace and there is much more development which will take place if the industry expectations are met from the budget.

Source : Equity Bulls

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