Finance Minister Smt. Nirmala Sitharaman is all set to present the Union Budget for the financial year 2021-22 by the end of this month.
Keeping in view the ongoing threat caused by COVID-19, a significant decision has been made by the government regarding the presentation of the Union Budget. It is going to be a complete paperless presentation.
Boosting the economy and revival of stressed sectors are expected to be the priorities and prime objectives of the upcoming budget discussion at the Parliament. The Finance Ministry is likely to make big announcements as Smt. Sitharaman has dropped hints on 2021's budget going to be like "never before".
Real estate hopes to get benefits from the Union Budget 2021-22
The Union Budget 2021-22 is likely to be all about growth and recovery. The economy declined in 2020 as many sectors faced huge losses with the real estate sector being one of them under crisis. As a significant contributor to the GDP, Real estate hopes for measures that will help the sector come out of last year's failures.
The previous year's thoughts and actions that the Government was unable to implement can be put forward this year. The list of expectations is huge. To begin with, delay in project completion has been the biggest hurdle due to lack of funds and manpower. By working on the availability & price of land, tax incentives, pricing of building materials, the government can help builders deliver real estate projects at the right price and time.
"The biggest challenge for the Government at present is to ensure that the economy returns on the recovery path. Being a significant contributor to the GDP of the country, real estate hopes to get some benefits from the Union Budget 2020-21 announcement. We expect that this year's budget will prioritise fund allocation for delayed projects. Relaxation on home loan rates will encourage buyers to invest in real estate properties and thereby, support the sector in its business flow." - Mr Rohit Malik, CEO, Clicbrics.
The Managing Director of Sikka Group, Mr Harvinder Singh Sikka, says, "Although, support to the sector was extended by RBI with low home loan interest rates and restructuring of loans, there remains a large gap to be filled for bringing about the lost momentum in the sector. As customer inquiries and buyers' interest in property investment begins to rise, the price of raw materials needs to be addressed under this Budget. Realty is further associated with multiple ancillaries; any relaxation provided to this sector will ultimately benefit a great number of associated stakeholders".
The real estate sector needs to be streamlined on many layers
The real estate sector is divided into three segments - affordable, mid and luxury. Each segment has suffered during Covid-19 outbreak and continues to be in crisis. Better streamlining and progressive measures by the government will help improve each of them.
The affordable segment is at an all-time high in demand. The year 2020 has left the common man helpless by hurting his financial health. Hence, the sector also looks forward to measures that will help buyers get loans at affordable rates and various other relaxations.
Besides the metro cities in India, Tier-II and Tier-III cities have emerged as the realty hotbeds due to an impressive scale of infrastructure development. With a focus on such cities, the CEO of Hero Realty, Mr Nagaraju Routhu stated, "As we are going through the challenging times, we expect that FM's Budget will truly be one-of-its-kind for the real estate sector too. It will be a tough call for the FM as she has to balance the market needs and financial prudence. We hope that the Government will focus on improving infrastructure in tier II and III cities, employment generation in cities beyond metros, and fund allocation for the stuck projects".