The Union Ministry of Housing is likely to introduce a bill to regulate the real estate sector in the upcoming session of Parliament this winter. A private business TV channel reports how this proposed law could help check the creation of a housing bubble in India.
Bangalore and Chennai have been exponential in the growth of real estate sector in the recent past. This is largely because the two cities are among the most prominent cities in South India in terms of generating new business.
To help real estate sector in the country to get bank finance for restarting work on stalled projects, the Union Finance Ministry is taking initiative and the banking sector is also getting ready for the same.
India Ratings-Mumbai-10 January 2013: India Ratings has revised its outlook for Indian cement manufacturers to "stable to negative" for 2013 from negative in 2012, driven by limited downside risk for demand.
Slowdown in real estate sector continues to affect the Punjab government’s exchequer, with revenue generation from stamp duty and registration fee show no sign of picking up anytime soon. Finance Department data show a decline of 10 per cent in receipt collection in the first nine months (April-December 2012) of the current financial year compared to corresponding period of the previous year.
Even as the government embraces proactive steps to bolster the economy, real estate sector believe that momentum in the ongoing initiatives should also be maintained. Steps like allowing external commercial borrowings (ECBs) for affordable housing, trying to bring interest rates down and opening up the retail sector are among them.
Finance Minister's decision to grant an additional tax deduction of interest of up to Rs.1 lakh for a person taking the home loan up to Rs.25 lakh for the first time during the financial year 2013-14. The move will help promoting the Real Estate sector and will also widen employment opportunities for many in the construction sector.
The Union Budget 2013 - 2014 has encouraging announcements for the real estate sector. The notable measures undertaken by the Finance Minister on an additional deduction of Rs. 1 lakh for people taking a home loan on their first home shall encourage the first-time investors to invest in the sector.