Real Estate Developer Hiranandani on Budget 2019 and Housing

Real Estate Developer Hiranandani on Expectations from Budget 2019

Before Nirmala Sitharaman’s maiden Budget, real estate developer Niranjan Hiranandani explains the problems causing the slowdown in the housing sector and the economy in general.

(Photo: The Quint)

Video Editor: Purnendu Pritam and Vishal Kumar

Before budget 2019 what's ailing the housing sector & the economy? Real estate developer Niranjan Hiranandani speaks to The Quint.

Need to increase liquidity in market to improve the housing sector

“The slowdown that the housing sector and the Indian economy are experiencing can be solved by improving liquidity. After the IL&FS crisis, there is very less liquidity for both developers and the rest of the economy. It is important to improve this situation. Once this situation improves, there will be relief and the real estate sector will pick up. Prior to this, there were issues like RERA, demonetisation, GST and other reforms which led to a slowdown in the sector. Buyers were also postponing their plans (to buy) because the GST rate was at 12 percent. But according to me, in next 5-6 months, as soon as the liquidity improves the sector will also improve.”

Niranjan Hiranandani, Real Estate Developer

Why is there a slowdown in the market? 

“There are two factors. One is liquidity. The overall repercussion of this is, how to set up the market? When people are less optimistic about the future they postpone their plans to buy. They postpone plans of buying a house, a car or any other consumer goods. I think in the next two-three months close to Diwali, when the weather also becomes better and agriculture sector also witness an improvement the situation will improve.’

Niranjan Hiranandani, Real Estate Developer

‘On the whole, the entire market is experiencing a slowdown’

‘But, the effect on the premium segment is more clearly visible. In the affordable segment, rates are low and the government has also given them a little relief like in GST, credit availability and a few concessions. So obviously the situation of the affordable segment is better. But the premium segment will also improve over sometime.’

Niranjan Hiranandani, Real Estate Developer

Hiranandani hopes that if the government agrees to give the developers some relief on stamp duties, and reduces the GST, the real estate sector can see some improvement.