‘Budget 2021 Lacks Practicality for Realty Sector’, Say Developers

Realty sector was betting big on Budget 2021 for its revival, however, most of its wishes didn’t get fulfilled.

Realty sector was betting big on the Budget 2021 for its revival, however, most of its wishes didn’t get fulfilled. Image used for representation. 

(Photo: Altered by The Quint)

Video Editor: Purnendu Pritam

Real estate developers and consultants have expressed disappointment with the Union Budget for the financial year 2021-22, which was tabled in Lok Sabha by Union Finance Minister Nirmala Sitharaman.

Liquidity in the realty market has been a long-term concern for real estate developers, which they feel this Budget failed to address. "There is a lack of practical options to bring liquidity in the real estate sector," says KĀGAAY Technosolv Co-Founder Swapna More.

Hit hard by the COVID-19 pandemic, the real estate sector was betting big on the Budget 2021 for the revival of its fortunes. However, most of its wishes like GST waivers for home buyers, and hike in tax rebate on home loan among others, didn’t get fulfilled.

However, with the objective of ‘Housing for All’ the finance minister did extend the benefit of an additional interest deduction of Rs 1.5 lakh for small taxpayers to purchase affordable housing by one more year.

“Abolition of Dividend Distribution Tax (DDT) for corporate is a bold move that would help them diversify or expand their business.”

Gaurav Nanda, CFO, Housejoy

"On the flip side, a hike in Section 24 of Income Tax rebate, which is currently at Rs 2 lakh, could have kickstarted healthier demand in the housing society, especially in the middle class," he adds.

The sector hopes that financial stringency and banking norms would be relaxed at least for a year to facilitate liquid cash in the hands of the realty buyers.