PUNE: “The Real Estate sector, which is facing a downturn due to the unprecedented crisis can recover and prosper only if proper urban services and resources are made available in the residential areas by the developers and also if it is brought under a single-rate GST, which can be of 12 percent. We have to introduce some policy measures in order to stimulate supply and demand in the real estate sector,” said Dr. Vijay Kelkar, former Finance Secretary, and Chairman, Finance Commission, Govt. of India while speaking at the online 37th Annual General Meeting of CREDAI-Pune Metro.
Dignitaries including Suhas Merchant, President, CREDAI-Pune Metro, Satish Magar, President, CREDAI National, Aditya Javdekar, Secretary, CREDAI-Pune Metro, Dr. Ajit Ranade, Chief Economist, Aditya Birla Group and Krishna Prakash, Police Commissioner, Pimpri-Chinchwad among others were present during the online discussion.
“Tax should not be levied on renting spaces utilized for residential space and we need to reform the rental laws. The COVID-related crisis has affected the economy and has had a negative impact on commerce. I am pessimistic about the economic growth and by 2022-23 the Indian fiscal growth will not be more than 10 percent. The country is going to take time to recover,” said Dr. Kelkar.
However, he said that he expected that in the next 3 years the real estate sector would turnaround as the Central Government is proposing to implement reforms in the sector while demand for homes is improving.
Speaking on the slump in the real estate sector, Ajit Ranade said, “We are facing triple shock in terms of demand, supply, and finance. The business confidence in investments depends on the anticipation of demands but there is uncertainty in the confidence of the consumers, which indirectly affects the business. Real Estate constitutes about 6-7 percent of GDP and it is a very important part of the economy as one residential flat gives rise to 250 other sectors. However, with the current trend, which is changing in terms of working spaces or areas reserved for Work-From-Home, we are hoping that the share of real estate will double in the coming years.”
Suhas Merchant said, “During the lockdown period, CREDAI-Pune Metro managed to collect Rs 20 Crores for the welfare of the society through its members. Even though the real estate sector is facing problems due to the economic downturn, we’ll find a way and make the city a better place to live in.”
CREDAI-Pune Metro will announce the Best Building Award in different categories on October 25, 2020.
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