Quote from Mr. C.N Govindaraju, Chairman & Managing Director, Vaishnavi Group,
“We expect the interest rates on home loans for affordable housing segment which are under Rs.50 lakhs to be around 7% and for the other segments to be sub 8%. We also expect that the IT exemption for housing loans to move up from Rs. 1.5 lakhs to 2 lakhs.In the non-metro areas, the built up area for affordable housing segment has to be taken up from 60sqm to 90sqm ofplinth area. We are also expecting financial institutions to extend their maximum tenure of loan repayment from 20 years to 25 years.The triggers which will bring the momentum back in the real estate industry are lower interest rates on home loans, tax sops to the home buyers, single window clearance for developers and fast track clearance process.”
Mr. Suresh Hari, Secretary, CREDAI Bengaluru
Since demonetization, the Industry is expecting a greater level of facilities and impetus to the Real Estate.
The announced incentives to Affordable and low cost housing is the beginning.
The expected Industry tag to the sector is a long sought after demand and will improve better financial inflow and management.
Income tax exemption for affordable and dwellings of particular size will ensure that greater reach for demanding home buyers.
Better borrowing terms for real estate industry from commercial banks is a pending demand. Since the Habitat Policy envisages housing for all by 2022, this approach will enable cost of finance considerably comfortable.
Rationalization of plethora of Labor laws, which the Industry faces.
With GST regime kicking in , better tax administration is expected and more incentives for the sector from local governments is sought.
With RERA being implemented, the customer issue of home buyers is well taken care of. The government need to address real estate industry with the better tax rates due to increased cost on account of RERA impacted cost .