|
|
|
Developers laud steps for realty in 3rd round of stimulus
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 14 Nov, 2020
Real estate developers and experts have applauded the measures to boost
demand and provide liquidity for the sector announced by Finance
Minister Nirmala Sitharaman on Thursday.
Sitharaman announced an
increase in the permitted differential between the circle rate and the
agreement value of housing units to 20 per cent from the current
mandated limit of 10 per cent till June 30.
The increase in
differential will be applicable in residential units of value up to Rs 2
crore. It will help in reducing the tax liability as the tax will be
applicable on lower value of residential units.
The minister said that the decision has been taken to boost sales at a time when demand is low and inventories have piled up.
Further,
the Centre will also allocate Rs 18,000 crore more to the Pradhan
Mantri Awas Yojana (PMAY) - Urban for building houses for middle income
and economically weaker sections of the country.
Satish Magar,
President, CREDAI National, said that decision to increase the permitted
differential limit would help developers to offload long-standing
unsold inventory without having any liability under section 43CA for
developer and under section 56 (2)(X) of the IT Act for home buyers.
"The
slew of measures announced by FM today will have an overall positive
impact on the economy and will definitely boost employment and provide
some relief to the ailing real estate sector," he said.
Anuj
Puri, Chairman of Anarock Property Consultants, noted that the increase
in circle rate differential will benefit both developers and homebuyers.
"For
home buyers, it is a clear added financial benefit to round off the
existing offers and discounts. Additionally, the consequential relief up
to 20 per cent to buyers of these units under Section 56(2)(x) of the
IT Act for the said period will definitely boost demand, especially in
the affordable and mid segments," he said.
For developers, this move will help clear unsold stock, Puri added.
Farshid
Cooper, MD of Spenta Corporation, observed while the initiatives
provided earlier had set the wheels moving and few state governments had
also reduced the stamp duty to give added benefits, the circle rates in
cities like Mumbai were still creating a barrier for home buyers to
make the purchase.
"With this announcement of increasing the
differential between the circle rates and agreement rates, the
affordable residential housing segment is surely expected to witness an
uptick and buyers can make an informed decision which will eventually
help them to save their taxes. Additionally, FM's impetus to the PMAY-U
will help create housing demand in Tier II & III cities and
employment in allied industries," Cooper said.
Magicbricks CEO Sudhir Pai observed that the time-bound relief for real estate should ease the stress on the sector.
"The
additional outlay of Rs 18,000 crore over and above the budget
allocation of Rs 8,000 crore given to the Pradhan Mantri Awas Yojana
(Urban) provides banks with the resources to meet this consumer demand,"
he said.
"The increase circle rate differential till June 2021
will help developers to liquidate stock, even at discounts. "This should
push sales and start the virtuous cycle in the economy," Pai said.
Surendra
Hiranandani, Chairman and Managing Director, House of Hiranandani, said
the announcements amid the festive season were "perfectly timed".
"Just
when the sentiment is improving amidst the festive season, the
government with their income tax relief measure has further provided a
thrust to the sector. The move is bound to encourage new buyers. The
announcement also provides relief to the developers as the tax liability
is reduced," he said.
Krish Raveshia, CEO of Azlo Realty, said
that real estate prices in many pockets of India have remained subdued
and declined in some cases. A higher difference will help address this
issue, he said.
On the additional outlay for PMAY-U, he said that
as the real estate sector is connected with many other allied sectors,
the move is likely to boost demand in multiple sectors, mainly steel and
cement.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|