by Mr. Anuj
Puri, JLL India
The Union
Budget 2014 -15 was presented in parliament under economic circumstances
requiring tax revenues to keep pace with targets. The Finance Minister Mr.
Narendra Modi has taken a cautious yet
courageous path with his budget announcements and the main key points are as
below.
Housing
sector..
In terms
of relief to the housing sector, the budget has allocated Rs. 4,000 Crores for low - cost housing
schemes. Additionally, the budget has also enhanced the deduction limit on
interest payment for housing loans from Rs. 1.5 lacs to Rs. 2 lacs. These 2
factors alone will lead to a vastly improved sentiment for the housing markets.
Infrastructure..
The budget
has allocated a total of Rs. 37,880 Crores towards the NHAI (National Highway
Authority of India) for the construction of highways, and additional Rs. 3000
Crores to boost road connectivity in the North-East regions.
For the
current year (2014), it has targeted the completion of 8500 kilometres of
national highways, which are a known real estate catalyst.
Retail
real estate..
India’s
warehousing sector has received a boost with an allocation of Rs. 5,000 Crores.
This exhibits positive implications for Retail real estate and specifically for
E-Commerce, on account of a strengthened supply chain, which has been a crucial
requirement of this sector.
Apart from
this, the budget 2014-15 has not provided any further benefits to the retail
sector, which is certainly a disappointment.
REITs
The
much-awaited clarity on taxation of REITs was finally delivered in the budget.
REITs will be allowed tax pass - through status, which means it will not be
subject to tax, provided all criteria for investments & dividend
distribution are followed. This has laid the final roadmap for REITs to start
operating in India and has opened-up an attractive avenue of raising funds.
Realestonomics..
The
Indian real estate industry is in an urgent need to reform & speed up the approval process for real estate
projects. As state and central agencies act individually on real estate
approvals without any correspondence with each other, they lead to delay in
getting a project off the ground. Thereby increasing the project cost.
The
reform is likely to benefit the the government as well, as healthy growth in
real estate industry will contribute significantly in increasing state and
central government's revenue while increasing the nation's GDP
Market
Sentiment improving..
Investment
sentiment improving with formation of the new Modi government
Deal of
the month ..
The
bungalow of renowned Indian scientist Dr. Homi J Bhabha located at Malabar Hill
in Mumbai was bought by the Godrej family at Rs. 372 Crore.
Think
About It!!
JLL's 8th
global real estate transparency index, covering 102 markets worldwide showed
that Indian cities have moved up the transparency ladder with improved data
availability.
Green
Wall ..
The
Ministry for Environment, Forests & Climate changed has started a system
for online submission of applications for environmental clearances on World
Environment Day .
About the
author
Mr. Anuj
Puri,
Chairman
& Country Head ,
JLL India
Land Line: + 91 22
6620 7575.
E- mail id:
anuj.puri@ap.jll.com
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