Prashant Solomon, Managing Director - Chintels India Ltd
ON REAL ESTATE SECTOR
We have high expectations from the Government’s second full-fledged Union Budget in 2016. Hopefully, our sector will get the much needed industry status finally. The real estate sector is sensitive to many of the policies that are announced both for various industries and individuals. REITs should be expanded to the residential sector where investors can get returns on capital appreciation so that developers can get the much needed funding for projects. It's not only so investors can get better returns but ask so projects can get funding.. The Government should also encourage External Commercial Borrowing (ECB) in residential & commercial projects. There should also be provision for Affordable Real Estate Zones with tax rebates for builders investing in such projects. The Government should also roll-out the much delayed Goods & Services Tax (GST) as it will give the much needed thrust to the industry and will benefit manufacturing in India extensively. Additionally, reduction in home loan interest rates will also give a boost to end-user buying, especially among middle-class wage earners.