Budget 2022 Wishlist: 'Reduce interest rates on home loans, industry status for realty sector'
The real estate sector has given an extensive wish-list to Finance Minister Nirmala Sitharaman. However, they do not foresee great news coming in for the sector this Budget 2022
FollowWith Covid cases soaring again at the beginning of the year and uncertainty looming large over various sectors, the real estate sector is also manifesting its fears and doubts. Although the market perspective is better than last year, sector experts say that the atmosphere is not very conducive.
Talking to Asianet Newsable, Farook Mahmood, Founder President of the Indian chapter of the International Real Estate Federation (FIABCI), said that the sector has an extensive wish-list that has been communicated to the Union government.
"We want industry status for the real estate sector. We have asked for GST revision, reduction in stamp duty and reduction in home loan interest. But I do not think any of these things will happen. Maximum they might give a reduction in home loan rates," he stressed.
Due to the worsening situation and many offices shut, the real estate value has crashed in a few metro cities. Those who had plans to buy homes took a step back as many lost their jobs while others stared at salary cuts.
"I am sure that there will not be many benefits for the sector or the common man. This (budget) will be more like window-dressing. I don't think the common man will reap the budget benefit at all," said Mahmood.
He noted that there is a deficit in the budget and highlighted that the government announced so many things, but they have not been able to fulfil them.
Mahmood says, "The real estate sector itself faced many challenges. They (the government) promised a reduction in the interest rate. If they reduce the interest rate, there will be an improvement in the market, but that did not happen."
"We expect a tax-free component for home loans. The construction cost is shooting up -- from labour to steel and cement; everything has gone up. We hope the government does something about this in this budget 2022," he noted.
Budget amid Covid and fear of Lockdown
Hoping that the country will not go for another lockdown considering the low rate of hospitalizations amid the surge in cases in 2022, Mahmood pointed that if there was another lockdown, not just the real estate sector but all would be in big trouble. The whole economy has already been shattered, he says.
"On one hand, people are dying due to Covid, and on the other hand, people died because they had loads and debts which they are unable to clear. Not just realty but all others (sectors) will suffer. Work From Home will become a hybrid version where people will go to the office as well as choose to work from home," added Mahmood.
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