It’s been a real rough patch for the real estate sector. It has gone through some of the toughest times brought about by the November 2016 demonetisation, and implementation of Real Estate Regulatory Authority (RERA) and Goods and Services Tax (GST). Now developers and other players in the sector are making their demands known to the Centre.
Now that the big players in Bengaluru have complied with the regulatory changes, they want something in return. They are hoping that the Centre will oblige them in this year’s budget by meeting their long-standing demands.
The players want industry status for the real estate sector. The purpose is to raise funds at lower rates. A number of experts believe that the current laws and levies as applied to the real estate sector must be changed, as they push up costs and often lead to double taxation.
The holding cost of properties is a major problem. It’s going up significantly as developers are having difficulty offloading their stock. Cost of capital is pushing up prices. Hence, developers are demanding innovative solutions and self-enforcing guidelines. Bengaluru’s known developers have happily complied with RERA regulations.
They have in fact gone a step beyond, have signed affidavits. Now, they want their demands to be met, as RERA will hold them responsible for any diversions from promised plans. While all eyes are on this year’s budget, some are of the opinion that the time has come to look at budget as the holy day when all policy decisions are made public.
They believe there is little need to wait for such a day. This will help speed things up. The real estate sector is now coming together and asking the government for better conditions. Architect Naresh V Narasimhan has even suggested that developers may give the ground floor of their projects to civic agencies provided it is returned to them once all regulations have been complied with.
Some developers have also raised the issue of stamp duty, stating that technology and digitisation of processes have made stamp duty redundant. Everything can be carried out online, which is a much more secure process.
Developers now want more support for the real estate sector. Recently, several leaders from the real estate sector raised these points at the panel discussion of International Real Estate Federation FIABCI-India chapter. What are your views on the same? Do share them below in out comments section.