The Union Budget 2019-20 will be rolled out by India’s first woman finance minister Nirmala Sitharaman a few days from now and the Indian real estate sector is expecting to get their long-pending demand fulfilled now.
- Progress till Now
Industry status is one a big favour to any sector as it makes working easier. The story is same in case of the Indian real estate market as in 2018 industry status was partially given to affordable housing category. But, this is not acceptable as multiple categories come under the umbrella of the property market like commercial, mix-land, lease land and more.
- Expert Opinion
While taking into consideration the partial industry status, several real estate experts feel that it is a high time for the property sector to get Industry status. The fulfillment of this long-time demand will empower the developers to avail loans at lower rates and this will bring down the construction cost. This entire process will reflect in lower housing costs and thus the property market will again witness a boom.
- Lending Norms
The fulfillment of industry status will be a boost to the Indian realty sector as the provision of lending norms can be changed afterward. The increase in lending limit from the banks and financial institutions will be a positive move for the property market. The increased availability of funds will allow a regular and fast supply of projects in the realty sector.
- Economic Transformation
NAREDCO i.e. the real estate body in India feels that the industry status will add a new dimension to the property sector. The developers will plan projects in the rural and northeastern areas as availing subsidies from both the State and Central Government will become easier.
Apart from this, a clear road will be designed for the inflow of money from the international property market to get incorporated in the Indian realty sector. The industry status will open doors to the corporate, co-working and living cultures across the country.
- Single Window Clearance System
Liquidity is the main concern for the Indian real estate sector today as many reputed companies went into the same. The main reason behind this issue is the non-availability of funds and the continuous launching of projects.
In the past few years, the developers wrongly accumulated the conditions and thought that the boom in the prices will turn into increasing demand from the prospects. After going off all this into vain the real estate sector now relies on the industry status as the regular inflow of funds is the only way out for the market.
PM Narendra Modi promised to bring the real estate sector’s problem to an end and the realtors wish the same will happen in the Union budget that will be laid on the table of the house on 5th July 2019.