By: Anuj Puri, Chairman – ANAROCK Property Consultants
Mumbai, February 02, 2019: The interim budget was more or less a vote bank-facing exercise – an electoral pitch that drew attention to past achievements. Vote-bank directed announcements included benefits to 12-crore small farmers via credit of INR 6k/year directly into their bank accounts, and also to 10 crore laborers by way of direct pension bonanza.
Direct and indirect positives for the real estate sector:
On the Downside:
All in all, this was a balanced budget for real estate, even though it was clearly configured as a crowd-pleasing electoral pitch with a cursory nod towards the ongoing challenges in the economy.
For the housing sector to regain significant momentum, the real need is to woo back the long-term investors who exited the residential market. One possible way was to re-introduce the home loan benefit on second homes. The Government’s move on this front is certainly welcome.
In mature markets, long-term investors keep the equity flow intact, and Indian real estate needs to have equity inflow rather than relying on debt. Equity can come through long-term investors and private equity or institutional players.
Definitely, no single Union Budget has ever actually come to the rescue of the real estate industry. Any incumbent Government perpetually walks a perpetual tightrope stretched between the expectations of various industries and compelling economic prerogatives. Also, there are always areas for which there are no quick fixes possible at all.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
Accutest Biologics gets global Honour, India’s First Standalone Facility gears up to leverage growing global drug demand
Digit SQUAD Tech Day hosts the biggest tech influencers gathering in India
Hot Muggs launches `India Heritage’ traditional drinkware range with a twist
Subvention Schemes Ban – Only 8% of Total 280 Housing Projects Launched in Q2 2019 Affected
Jungo TV Joins Forces with Verizon Media to Power Global Ad Network
2014 The Global Indian New Network (TGINN)