by Kishor Pate, Amit
Enterprises Housing Ltd.
The upcoming Union
Budget - 2013 -14 will address the nation's overall financial concerns, within
the framework of powers vested in the Finance Ministry.
It is eagerly
anticipated every year, since it announces policy changes which have a direct
or / indirect bearing on the economy, the industries that drive the economy and
- not least of all - the common man.
These policies are
formulated on the basis of a national perspective.
In other words, they
may not have same relevance in various States, since States have their own
policy mechanisms. It therefore makes little sense to expect the Union Budget
to take into consideration the requirements of individual cities.
Kishor-Pate, CMD, Amit-Enterprises-Housing |
Nevertheless, the
broader policy changes (or lack of changes) do have a bearing on the economic
situation within each city.
Expectations
From Union Budget..!
As such, Pune
certainly does have expectations from the Union Budget 2013-14. As an
industrial powerhouse that generated enormous revenue for the Government and
countless jobs for its citizens, Pune will be directly affected by the
financial policy decisions that the Budget brings forth. And one of Pune's most
dynamic industries, which provides livelihoods and also caters to the housing
requirements of lakhs of people across all income segments, is real estate.
Therefore, the Pune
city's real estate market looks forward to positive policy announcements that
will benefit it as an industry and also its many stakeholders.
On a macro level, it
is expedient that the Union Budget rationalizes the existing housing loan
interest rates so that more Indians can begin to realize their deferred plans
of home ownership.
Home Loan
Interest rates..!
Loan Interest rates
play a crucial role for many segments of this country's society and are a key
consideration for the LIG (Low Income Group) segment. The Union Budget should
also reduce the income tax burden on the common man so that there is greater
ability in and incentive for investing in self-owned houses.
The Budget should
also introduce measures to increase FDI (Foreign Direct Investment) inflows
into India, and broaden the scope of external commercial borrowings (ECBs) so
that more low-income housing can be created.
Pune is eminently
placed for budget housing, thanks to its lower land prices, the availability of
sufficient land parcels for low-cost housing and also developers who are still
willing and able to cater to the affordable housing segment. More foreign
investment into the city's real estate sector, both in terms of commercial
spaces to generate more jobs and more housing, is a very real need.
Infrastructure
Development..!
Similarly, a more
significant allocation for infrastructure development coupled with stricter
guidelines on implementation of infrastructure projects would make a huge
difference for Pune's real estate market. The increasing deficit of cohesive
and comprehensive infrastructure is becoming a bigger problem for Pune with
every passing year.
For that reason, we
also expect that the Union Budget takes decisive steps to remove the
bureaucratic hurdles to implementation of pending or deferred infrastructure
undertakings. The city needs to grow outward, and this is only possible if the
emerging areas receive road connectivity as well as basic facilities such as
electricity and water supply.
Finally, Pune's
developers look forward to an easing of funding for new projects. More project
completions mean more competitiveness on the market, and competitiveness is
what keeps prices in check. It is axiomatic that when supply becomes scarce,
real estate prices rise.
Will Union Budget
2013-14 deliver on some - if not all of these points? Will it give Pune's real
estate market reason to cheer? As always, the city waits with bated breath for
some positive signals this year.
About
the Author..!
Mr. Kishor Pate is
CMD at Amit Enterprises Housing Ltd. and Secretary at CREDAI-Maharashtra.
Corporate Office
Address - Amit Enterprise Pune
Amit House, 1902 Bajirao
Road, Sadashiv Peth, Pune- 411 030.
Tel: +91 20 2448
9494, +91 20 2448 9495 E - Mail: sales@amitenterprises.com
Mumbai Office Address
506 Ceejay House, Dr.
Anne Besant Road, Worli, Mumbai: 400 018.
Tel: +91 22 2499 0079
For Corporate
Bookings+91 98 22 97 94 79. Email:sales@amitenterprise.com
For Media Contact
Mr. Jay Kalghatgi
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