This time the Union Budget of the country is coming on Sunday. Every sector has its own expectations from the budget. This time the real estate sector is also hopeful that the government will give it industry status. For this, the sector has put forward many demands before the government. These include making land records online, speeding up the approval process and introducing an easy single-window clearance system to revive demand for houses.
Industry related organizations and builders say that by getting real estate industry status, they will be able to get cheap and long term loans, will have less interest on loans and will get more options for systematic financing. Developers say that this demand has been pending for a long time and they expect continuous policy support from this budget.
What is the contribution to GDP?
In a Moneycontrol report, Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Limited, said that the real estate sector currently contributes about 7 percent to India’s GDP and provides employment to more than 200 related sectors. If real estate gets the status of an industry then funding from big institutions will become easier and this sector will be able to play a stronger role in employment and economic development. With the right policy support, the contribution of real estate to India’s GDP can reach 15 percent by 2047.
Tribeca Developers Group CEO Rajat Khandelwal said the sector is looking forward to consistent policies that benefit both home builders and buyers. He said that it is necessary to give industry status to real estate because it will make it easier to get long-term capital, loans will be cheaper and the working style of builders will become more effective.
Khandelwal said that real estate development is directly linked to infrastructure. More investment in city infrastructure, public transport and smart city schemes will not only improve the cities but will also strengthen the real estate sector. Sterling Developers Chairman and Managing Director Ramani Shastri said that getting industry status will enable the real estate sector to reach its full potential as it will provide cheaper funds and ease the process of government regulations. He said that overall, we want to see such announcements that make it easier for developers to work and create a good environment for investment in real estate.
Demand for single-window clearance
Developers have also demanded implementation of a single-window clearance system, in which approvals from different departments can be obtained on a single digital platform. He says that this will reduce red tape, take less time to complete the project and increase transparency. TRG Group MD Shorab Upadhyay said that real estate traders are waiting for a budget that will increase stability, liquidity and confidence in the sector. He said that we hope for faster project approval, single-window clearance and strong policy support for making land records online. These steps will make doing business easier and help in completing projects on time.
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Harsh Jagwani, managing director of Notandas Realty, said the single-window clearance system should have been implemented long ago. This will speed up the pace of getting approvals and will bring the necessary speed and impact in completing the project. He said that the government should focus on digitalization in the process of purchasing property along with land. This will not only start new projects quickly, but will also make it easier for common people to buy houses. Clear land ownership records and strict escrow rules under RERA will reduce both transaction risks and funding delays.
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