India Union Budget 2014 has been presented by the finance minister, Arun Jaitley. Here are the reactions from real estate industry players.
"While, the above announcements are sure to bring in some positivity in the sector, the industry was expecting more than this from the budget. Important long pending decisions such as infrastructure status to the real estate sector and providing for single window clearance scheme were some of the most awaited announcements. However a silence on these facts has been a disappointment.”
"Budget with propel GDP growth which will in turn spur real estate demand over the medium term. Specific measures relating to reduction in area for FDI and REIT’s will increase liquidity in the sector and as such reduce the dependence on the banking system. With the current incentives in the budget, Affordable housing will become even more attractive from a developer’s perspective."
“Reforms promised in Advance Ruling, retrospective taxation rates and assurance of fiscal prudence, fiscal discipline as well as commitment for a stable and predictable tax regime will boost the confidence of foreign investors."
“The emphasis on development of infrastructure – roads, railways, ports and power as well as increase in FDI limits from 26 per cent to 49 per cent in Defence and Insurance sectors will considerably catalyze economic growth. Fiscal incentives and other measures announced for promoting urban housing, particularly for the middle class will help development of civil infrastructure. The proposal for development of 100 ‘smart cities’ will provide a big boost to the housing and infrastructure sectors.
“The Chamber welcomes the incentives provided to boost indigenous production through the relief in Excise Duty and Customs Duty and rationalisation of duty structure, particularly with regard to coal. Enhancement of Income Tax slab rate will not only help the common people, but also help in improving domestic savings."
Ms. Manju Yagnik, Vice Chairperson, Nahar Group
“We welcome the budget presented by the honorable Finance Minister. From real estate point of view, we feel it is a mixed budget. Allocation of funds for creating housing stock through development of new cities, national housing program, low cost housing through National housing bank is sure to create massive opportunities for construction across the country. Introduction of Real Estate Investment Trust is another decision to welcome as this will safeguard the interest of the investors and help in creating transparency in real estate transactions. The limit of rebate on interest on Housing loans has been increased to Rs 2 Lakh from Rs 1.5 Lakh is also one of the positive aspect of the budget.""While, the above announcements are sure to bring in some positivity in the sector, the industry was expecting more than this from the budget. Important long pending decisions such as infrastructure status to the real estate sector and providing for single window clearance scheme were some of the most awaited announcements. However a silence on these facts has been a disappointment.”
Venkatesh Gopalkrishnan - EVP & CIO, Shapoorji Pallonji Real Estate
"Overall a very well balanced budget keeping in minds growth, deficit and inflation. Meeting the fiscal deficit targets could be challenge, tax reforms and rationalization, driven by realizations led by higher growth will help achieve the deficit targets.""Budget with propel GDP growth which will in turn spur real estate demand over the medium term. Specific measures relating to reduction in area for FDI and REIT’s will increase liquidity in the sector and as such reduce the dependence on the banking system. With the current incentives in the budget, Affordable housing will become even more attractive from a developer’s perspective."
Shri Sajjan Bhajanka, President, Bharat Chamber of Commerce
“Given the constraints of resources and time, the Budget presented by the Hon’ble Finance Minister is one of the most pragmatic in recent years. The commitment of the Hon’ble Finance Minister in introducing GST and DTC and other fiscal reforms is evident from his taking the ambitious benchmarks of Fiscal Deficit and Current Account Deficit for 2014-15 set by the UPA-II as challenges. The much needed emphasis on ‘Ease of Doing Business’ has been reflected in the Hon’ble Finance Minister’s Budget Speech."“Reforms promised in Advance Ruling, retrospective taxation rates and assurance of fiscal prudence, fiscal discipline as well as commitment for a stable and predictable tax regime will boost the confidence of foreign investors."
“The emphasis on development of infrastructure – roads, railways, ports and power as well as increase in FDI limits from 26 per cent to 49 per cent in Defence and Insurance sectors will considerably catalyze economic growth. Fiscal incentives and other measures announced for promoting urban housing, particularly for the middle class will help development of civil infrastructure. The proposal for development of 100 ‘smart cities’ will provide a big boost to the housing and infrastructure sectors.
“The Chamber welcomes the incentives provided to boost indigenous production through the relief in Excise Duty and Customs Duty and rationalisation of duty structure, particularly with regard to coal. Enhancement of Income Tax slab rate will not only help the common people, but also help in improving domestic savings."