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Tuesday 24 March 2015

Budget 2015 invokes mixed reactions from realtors

After the presentation of the budget 2015 by the finance minister there are mixed reactions from the real estate circle. The real estate sector had high expectations of measures that would pump in some liquidity into the industry. But many critics opined that the budget is fairly positive with many development measures but as far as the real estate industry was concerned the residential sector was not given much of an importance that constitutes the major chunk of the revenue for the industry. The budget according to realtors completely ignored the residential sector of real estate and there is a full lack of any kind of push for the housing sector as the realtors expected a heavy cut on the rates of the interest rates among other factors which would have boosted the home loan procurement rate among the end users pumping in some liquidity to the industry.

The budget however announced the government’s intention of building six crore houses or residential units towards the scheme of “Housing for all by 2022” but failed to detail on it. Neither did the budget detail on the Sardar Vallabhbhai Patel Urban Housing Mission in terms of allocating the funds. The timelines, project locations, the instruments for funding and other factors were also missing.

Budget 2015 BangalorePropertyReviews

Few critics however appreciated the measures to reduce black money for which the step was taken by introducing the “Benami Transaction Bill”. The budget proposed to incentivize the use of wired money rather than hard cash transactions which few feel would significantly impact real estate. The budget also states that punitive measures would be taken against concealment of assets including Benami properties.

In talking about the liquidity few others argued that although this would impact on the real estate market on the whole but it might have a negative impact on the investor segment of the country. They go ahead to say that notwithstanding the positive intent of the government the Benami Bill can drive away the investors and exit the market.

Another criticism that came from the realtors was that the budget does not mention about the plans and programmes of constructing 100 smart cities. The budget document according to many lacks to boost the key factors and the sector of the real estate industry. On the first place it does not talk about the promulgation of the REITs and the InvITs. But Mr. Jaitly proposed to rationalize the regime of  capital gains for the sponsors exiting at the time of listing of units of REIT and InvITs and also announced the creation of six crore homes to meet the centre’s mission of “Housing for all by 2022”.

Others opine that although many macro factors were being looked into in the budget for a prosperous economic regime but the real estate sector was highly expecting for some compensatory measures for the lull in the last there years and as the sector was virtually gasping for more liquidity. The realtors were unhappy as the budget has nothing in it to cheer up.

Moreover given the burden of prevailing indirect taxes, stamp duty clearances, the high cost of borrowing for both the developer and the buyer, the real estate sector was hoping for some serious incentives among other measures to give a boost to the sector which the budget was devoid of. But many veterans feel that the government will make some announcements in this regard in the due course of the year.

Make In India 2015 Budget BangalorePropertyReviews

The measure for the REIT regime is welcomed by many as the indications that tax pass through on REITs will be implemented and the experts feel that this has the potential to stimulate the REIT market in India which can release lower cost capital, increase the flow of liquidity and stimulate the next phase of enhancement of the urban infrastructure of India.

Considering all these factors many opine that the budget is positive and balanced as the proposal to rationalize the capital gains tax regime is a positive step and the simultaneous reduction in the corporate taxes will ensure higher investment in the realty sector.

Dreamz Infra India one of the best builders providing affordable apartments for sale in Bangalore. Construction work is in full swing of Dreamz 7 projects which are located at Electronic City, Marathahalli, Sarjapura Road, Silk Board, JP Nagar.

20 on: "Budget 2015 invokes mixed reactions from realtors"
  1. After gone through this blog article feeling its difficult to buy the residential home in future because the financial minister was ignores the approving of budgets on building crore's of housing scheme towards Modi plan. for the investors it will be good time to invest now and get good returns in future..

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  2. In this financial issue we have to go for the Dreamz builder so that we can get our own home at fewer prices with the less Interest from their known Bank’s. In futures don’t know what will happen from politicians, especially in Karnataka. It’s better to invest in Dreamz builder who is selling the property at half of the market price with the new modern amenities. Having own home in Bangalore like living in a heaven, so invest your hard earned money in Dreamz and book your dream home in pink heaven.

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  3. The 2015-16 budget concentrated on corporate field and to reduce black money. However if corporate field improves it effects on real estate, so it is right time to invest in real estate.

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  4. I’m was planning to buy my dream home in next two years but after watching the News of budget mixed reactions, I’m feeling it will danger for me to invest for my dream home In next two. So it’s good opportunity for me to invest, so that I can be safe from these political issues and can earn good returns in next two year. Now I’m thinking, if I get a chance to invest in Dreamz builder means immediately I will go forward with them…!

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  5. This time only the "Benami transaction bill" is only the positive factor for the real estate. They given max importance to corporate companies for make in India.

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  6. As per the business strategy, real estate business is in critical situation and also it will become more critical for the property buyers in future. Might be there may be chances of increasing Interests so that which will effect to the investors, it’s better to buy a property from realtors or invest our money into the real estate sectors for the future purpose. Reason is that we can save huge amount from the Taxes and interest which will be hiking more in next two year..

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  7. For common man little difficult to participate in real estate investment because the service tax increased then the cost of construction will go increase by some amount, so 2015 budget there is possitive impact on the real estate field.

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  8. This is the right time for the investors to invest their precious money into real estate sector, before any other rules allocate by the Govt of India try to use it your money into real estate industry. There may chances of increasing the demands of properties due to the cut of budget for the housing sectors from the financial authority of India.

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  9. After gone through this article, I feel happy because last year I bought a flat in Dreamz Samhita with reasonable price. Now if you want to buy any flat or plot in Bangalore will cost more while compare to last year becoz in 2015 budget they increased the service tax. However if you want buy property you want to pay little more service tax.

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    Replies
    1. 2015 budget is not all considered developers and homebuyers. As Divakaran said except Benami transaction bill, there is no such an advantage for the realtors.

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  10. This all seems the realty sector going high day by day i.e. especially after presentation of 2015 budget it is still going high. It is better time to invest your earnings in right realty company.

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  11. There is no need of worry about 2015 budget increased the service tax and all. If you are looking for a home in Bangalore then why you people worry about the budget. There is a Dreamz Infra company for you to give a home in a affordable price.

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  12. After gone through the article and comments I'm feeling very happy becoz already I got booked a flat in Dreamz Sneh with affordable price. so I no need worry about the budget and taxes.

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  13. After gone through this article and all comments I came to know how important investing a money within a time at right builder. so don't make delay in buying home or investing in realty sector.

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  14. Now only I came to know why the people feeling happy those who were invested in real estate in last year. They no need bother about this service tax and etc...

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  15. Thanks you guys sharing your thoughts about this budget, I don’t make delay in buying my dream home, If I make delay the cost tax may go high.

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  16. Many of middle class people disappointed about the 2015 budget due to the increase of service tax and they didn't concentrated on “Housing for all by 2022” scheme. let see at least for the next year they concentrate on scheme “Housing for all by 2022” or not.

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  17. Hi to all I'm not worrying about this budget now because I booked a flat at reasonable price in Dreamz Infra's 'Management quota". After a discussion with Sales team and their existing customers and visited their projects, all projects are at good construction swing. after all these process I got a flat with Dreamz Infra with negotiation price.

    Thank U

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  18. It is best time for invest the money in Realty sector. The land and flats value increasing rapidly and you get best resale value with in a couple of months. But choosing a right builder is very important. So dont make delay if you want to invest your money in realty sector.

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  19. After the presentation of 2015 budget, many people get confused about to whether invest in realty sector or not. because they much more considered only corporate. And increased the service tax. But however the middle class still they are searching for homes at affordable price.

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