Will Budget 2021-22 deliver the goods for real estate?
Real estate, which forms 8% of India’s economy. is regarded as a bellwether of its health. Measures were announced in 2020, but this year, the demands go beyond the usual suspects of single-window clearance and industry status. Anuj Puri writes.
Have the government and Reserve Bank of India (RBI) done enough to bail out the economy and, by implication, real estate? After all, the realty industry remains one of the most precise bellwethers of the state of India's economy. As the vaccines roll out, Union Budget 2021-22, too, presents several opportunities to give the sector a shot in the arm. Given that real estate contributes more than 8% to the Indian economy, it has justifiable expectations.
Multiple measures were announced in 2020 to beat the unprecedented impact of Covid-19 on the overall economy and the real estate industry:
These measures were proactive and commendable but, not surprisingly, given the depth of pain in the real estate sector, they were not enough. The housing industry needs focused measures to further bolster demand in 2021. This year, the demands go beyond the usual suspects of single-window clearance and industry status.
Affordable housing is very likely to get another booster shot.
More than ever before, homebuyers and investors need focused tax incentives to get mobilised. Also, as the government is aware, developers' liquidity woes need to be alleviated to forestall further market mayhem.
Author: Anuj Puri is Chairman of Anarock Property Consultants, a real estate services company.