Mr. Chintan Sheth, Director, Ashwin Sheth Group
Budget 2021 will be crucial for the real estate sector with a series of developments across industries. The real estate sector faced multiple challenges due to reverse migration, stoppage of work, travel restrictions and less disposable income with potential buyers. However, the recovery has been a positive one, to say the least with profitable sales growth in the residential front due to the festive season, attractive schemes, and the consumers’ assertive outlook to restart looking for homes. Moreover, government reforms like reduction in stamp duty, the extension of the project completion deadline, RBI Monetary Policy Committee’s decision to extend the co-lending scheme for NBFCs and HFCs led the industry on the path of recovery and boosted market sentiment further.
We are optimistic about the amendments and wish the budget addresses some of the critical issues, such as:
· Speeding up infrastructure development to improve connectivity to various emerging micro-markets.
· GST waiver on under-construction projects for under-construction residential development
· Ease in the cash flow and capital generation options that will support the developers to complete the construction working in time