No feel good factor for realtors, home buyers
2 March 2015 5:25 AM IST
“The government claims to develop smart cities without giving details about it. Promise to provide houses for all will also be a distant dream if the industry does not get support,” said a Greater Noida-based developer. The Budget also disappointed investors-cum-home buyers as they will have to spend more due to 1.5 per cent hike in service tax.
The industry, which was very much enthusiastic about government’s highly ambitious smart city project, felt cheated as the Budget failed to unveil the road map. The real estate sector was promised to grant ‘industry’ status but no announcement was made in this regard. The sector was also hoping subsidised interest rates but no provision was made in the Budget.
“As majority of home buyers come from lower middle and middle class, they want lower interest rates. The approach of the government will affect affordable housing schemes which are in majority in the NCR,” said Manish Raj of Kworld Group.
“Although the Budget appears positive for common people, there is a total lack of any push for the housing sector. The residential real estate has completely been ignored. The finance minister has missed an opportunity to use real estate sector as a trigger for economic growth,” said Akash Singhal of Earth Infrastructure.
The investors, on the other hand, claimed to be cheated as the Budget proposed hike in service tax. Uncertainty over ‘Real Estate Regularity Bill’ also irked them. “The government increased service tax from 12.5 per cent to 14 per cent, which will put additional burden of the buyers. With the sudden hike, buying a house will become tougher for most people,” said Abhishek Kumar of Noida Extension flat Owners’ Welfare Association (NEFOWA).
The industry, which was very much enthusiastic about government’s highly ambitious smart city project, felt cheated as the Budget failed to unveil the road map. The real estate sector was promised to grant ‘industry’ status but no announcement was made in this regard. The sector was also hoping subsidised interest rates but no provision was made in the Budget.
“As majority of home buyers come from lower middle and middle class, they want lower interest rates. The approach of the government will affect affordable housing schemes which are in majority in the NCR,” said Manish Raj of Kworld Group.
“Although the Budget appears positive for common people, there is a total lack of any push for the housing sector. The residential real estate has completely been ignored. The finance minister has missed an opportunity to use real estate sector as a trigger for economic growth,” said Akash Singhal of Earth Infrastructure.
The investors, on the other hand, claimed to be cheated as the Budget proposed hike in service tax. Uncertainty over ‘Real Estate Regularity Bill’ also irked them. “The government increased service tax from 12.5 per cent to 14 per cent, which will put additional burden of the buyers. With the sudden hike, buying a house will become tougher for most people,” said Abhishek Kumar of Noida Extension flat Owners’ Welfare Association (NEFOWA).
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