The realty sector aims to create a similar demand and supply situation of giving every Indian a house of his own
India’s housing wants to get affordable and
it is exploring how. It dreams to be the next aviation sector of India,
which showed exponential growth by doling out cheap air tickets to
India's common man.
The realty sector aims to create a similar demand and supply situation of giving every Indian a house of his own.
As the Indian government is patting its back
for giving out a handful of sops to the housing sector and is wondering
why it should not be given its due credit, the real estate industry is
still getting its act together after facing four ‘tsunamis’ --
demonetisation, rera, gst and insolvency.
At a recently held event in New Delhi,
political leaders and government officials from the housing sector gave
an audience to the developers on policies’ overhaul.
Speaking at the event, Narender Singh Tomar,
Minister of Housing & Urban Affairs, Rural Development, Panchayati
Raj and Drinking Water & Sanitation, said the government was
committed to fulfil the Housing for All dream. He put the onus of growth
in the sector on developers saying it is the collective responsibility
of all the stakeholders to do so.
“The glitches and loopholes, if at all,
prevail in the real estate sector despite the fact that the government
has already brought out friendly regulations. The earlier hostile
clauses in the real estate policies have been kept aside to ensure
equitable growth in the real estate and construction sector, it is still
open for improvements,” explained Tomar.
Durga Shankar Mishra, Secretary, Ministry of
Housing and Urban Affairs (HUA) counted a number of measures introduced
by the government for the housing sector – CLSS, online building
approval, easy land acquisition, access to technology and one tax under
GST.
“The government has extended the Credit
Linked Subsidy Scheme (CLSS) to the mid-income group home buyers. This
interest rate subvention scheme should generate demand in the housing
sector. We need developers’ contribution as they need to take the
benefit to the people who can consume the ready inventory,” said Mishra.
However, is this enough for the real estate sector to achieve the growth it aspires for?
The developers and industry experts are far from being pleased. They
raised a lot of concerns which they assert are hindrances to attain the
Housing for All Mission. For them, 2017 has not been a normal year for
any trade in the country, including the real estate sector.
The developers agreed that low-cost housing is the future of the country
but they were still unsure about its timeline. There were murmurs of
introducing amendments in the recent policy changes.
“When GST was introduced, we were told that it will not cause any incremental tax on the housing sector. Which meant that it will be tax neutral. Industry experts said that a minimum escalation of costs comes to 3 per cent for projects and about 5.5-6 per cent where land cost is higher. The government is charging tax, irrespective of affordable housing or regular housing,” said Dr Niranjan Hiranandani, president, Naredco and co-founder and managing director of Hiranandani Group.
“We want the government to make housing sector tax neutral by making the adjustment for land cost. We are not asking anything special. For affordable housing the tax should not be 12 per cent but 6 per cent. The land cost are incrementally increasing. It is the need of the hour to use the government land for affordable housing to make it economically viable,” Hiranandani added.
Industry experts agree with him. “Sales are down and it will take a long time for the market to revive. This is not the year for assessments,” said Ramesh Nair, CEO and Country Head, India at JLL.
Developers need the government to show more passion for the real estate sector. The government, on the other hand, wants the sector to be passionate about the new policies. Between them is the consumer who nestles the passion of owning a home and wonders when he will be able to attain it.
“When GST was introduced, we were told that it will not cause any incremental tax on the housing sector. Which meant that it will be tax neutral. Industry experts said that a minimum escalation of costs comes to 3 per cent for projects and about 5.5-6 per cent where land cost is higher. The government is charging tax, irrespective of affordable housing or regular housing,” said Dr Niranjan Hiranandani, president, Naredco and co-founder and managing director of Hiranandani Group.
“We want the government to make housing sector tax neutral by making the adjustment for land cost. We are not asking anything special. For affordable housing the tax should not be 12 per cent but 6 per cent. The land cost are incrementally increasing. It is the need of the hour to use the government land for affordable housing to make it economically viable,” Hiranandani added.
Industry experts agree with him. “Sales are down and it will take a long time for the market to revive. This is not the year for assessments,” said Ramesh Nair, CEO and Country Head, India at JLL.
Developers need the government to show more passion for the real estate sector. The government, on the other hand, wants the sector to be passionate about the new policies. Between them is the consumer who nestles the passion of owning a home and wonders when he will be able to attain it.
To Real Estate Projects in Thane or Know More about Builders and Developers in Thane Contact Us at 022 2580 6868
Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane
– 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane
– 400 604, Maharashtra, IndiaMobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com
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