By Mr. Anuj Puri, JLL India
· Provide On-Ground Impetus For
Affordable Housing..!
In the previous nine-month Budget, the new
government outlined its vision for boosting affordable housing. From the
upcoming 12-month budget, the Indian real estate sector looks forward to
provisions that firm this vision up on the ground.
· Provide
Tax Incentives To Boost Rental Housing Segment..!
The Union Budget needs to provide tax incentives
for renting out of residential properties. Currently, rental income is treated
as normal taxable income.
Providing tax breaks specific to rental income
will give a significant boost to rental housing segment in the country, and
help increase rental supply in the metros.
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| Anuj Puri, JLL India |
· Enable Faster Project Approvals..!
Developers have been campaigning for a faster
project approval process for good reasons. Faster approvals would beef up the
supply pipeline, help bring prices down and also ensure that real estate remain
viable as a business.
The Budget should provide suitable relief on this
front, while simultaneously ensuring that construction quality norms are not
compromised in the process and that faster approvals do not result in support
infrastructure failure in new precincts being developed.
· Implement Real Estate Regulatory Bill (RERA)..!
The approval of the pending Real Estate
Regulatory Bill was deferred once again only recently. It must now be
implemented so that the Indian real estate market becomes attractive for
foreign investors.
The upcoming Union Budget should make this
vitally required policy a reality and put an end to the suspense.
· Relax Counter-Productive Clauses In LARR (Land
Acquisition, Rehabilitation and Resettlement) Act
The LARR (Land Acquisition, Rehabilitation and
Resettlement) Act, formulated and re-formulated several times, has so far
failed to counter land-related bureaucracy in India and has to date done quite
the opposite. In its current form, it is a deterrent for developers as well as
institutional investors.
The real estate sector is desperate to get past
this hurdle, because a lot more land must be made available for primary real
estate development as well as for infrastructure development.
Given the new government’s focus on ‘housing for
all’, fast-tracking of infrastructure and the creation of 100 smart cities across
the country, the Union Budget should present a workable and streamlined LARR
Act, with significant relaxation in the currently tedious rehabilitation
clauses and other norms.
· Provide More Incentives For Sustainable Real
Estate..!
The upcoming Union Budget should make a clear
benefit statement for consumers of green real estate in the country.
Stakeholders of the residential real estate sector in India definitely need
greater encouragement to go green.
Most home buyers in India are still quite averse
to paying an extra premium for a green residential project. Because of the low
demand, developers are not sufficiently active in this segment.
There is a distinct need for a combination of
incentives and stipulates to boost the development and consumption of
sustainable real estate development in India. The Union Budget should address
this lacuna by announcing State-level subsidies for development of green spaces
so that developers can keep their development cost at par with non-green
spaces.
·
Fast-Track REITs..!
Many overseas investment funds have so far
abstained from the Indian real estate market because of the lack of regulation,
political instability and bureaucratic quagmire. The new government has the
opportunity of making Indian real estate more investment-friendly and
attractive by introducing a revised tax code.
Until vital changes to overcome the tax hurdles,
REITs - which can literally be a life-saver for Indian real estate - cannot
take off. In the interest of the real estate sector as well as the overall
economy, the Budget must address this issue.
·
Encourage FII Participation In Infrastructure..!
India is still an infrastructure deficient
country and needs large investments to help bridge the infra gap.
The Union Budget should make more provisions to
increase foreign investors’ participation in this sector.
About the author
Mr. Anuj
Puri is Chairman & Country Head at JLL India
For media Contact
Arun Chitnis
Head – Corporate Communications & Media
Relations
JLL India
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Website: www.joneslanglasalle.co.in
Twitter: JLLIndia_Realty
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