CREADI MCHI: Budget 2020 will help in increasing residential sales

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[/vc_column_text][vc_column_text] The Raigad unit of the real estate body CREDAI MCHI expects that the budget 2020 will unveil the necessary policy reforms that will help rejuvenate the real estate sector. The sector expects good allocation of funds from Budget 2020 to help resolve the demand issues. The real estate body expects that measures to improve real estate demand, such as incentives for purchases that would help clear large unsold inventories of builders end as well as ease the bad loan burden on the banks.[/vc_column_text][vc_column_text]CREDAI MCHI Raigad Unit emphasizes on a one-time rollover or restructuring of loans to solve the liquidity problem. The cash crunch has been a worry for the sector for the past 2-3 years which needs to be addressed immediately for the prevention of the situation getting any worse. The tax waiver off for a limited period of time would be a good start for the revival of the sector. Even lowering the stamp duty will take some burden off the homebuyers. In many such ways, the demand will increase the number of units sold. The members of the CREDAI-MCHI Raigad unit state that sales of residential units have increased in the suburbs of Mumbai, especially Neral-Karjat - the fastest growing suburbs of Mumbai. In the year 2019, 2200 units were sold from the Neral-Karjat area. Revised reforms for the real estate sector will help in increasing the residential sales through Budget 2020 and the numbers of the Neral-Kajrat area might increase upto 5000 units in the coming year.[/vc_column_text][vc_column_text]Prabhat Ranjan, Managing Committee Member of CREDAI MCHI RAIGAD says, "Real estate is generally seen to be a significant contributor to the GDP of the country, an important and decisive marker for the economy. The sector's output has not been meeting expectations due to multiple factors, especially due to the global economic slowdown; the sector has been facing many issues that need to be addressed besides providing a holistic solution for each of them. There is an increasing need for a one-time rollover or restructuring of loans to solve the liquidity problem. It is crucial to look after the implementation of the Alternative Investment Fund of Rs. 25,000 crore in order to rescue stressed residential projects since completion of stalled projects will reassure the confidence of homebuyers as well as boost demand in this sector. Even personal and other tax policies should be revised which might result in healthier demand for affordable and mid-segment housing. We expect that the Government will lower the stamp duty to take the burden off homebuyers."[/vc_column_text][vc_column_text]The real estate sector is the top non-farm employment-generator in the nation in the post-liberalization time. While it contributes a significant share to the country's GDP, it is presently amidst a slowdown in growth. With much-awaited Budget 2020 which is to be announced on February 1, 2020, the sector's demands for its revival and to overcome growth obstacles are expected to be addressed profusely. With the Budget 2020 round the corner, developers like Labdhi Lifestyle, Signature Group, Haware Builders, On Earth Group, etc have shared various offers.[/vc_column_text][vc_column_text]Encouraging the sentiments of the homebuyers is important for which the Government needs to take steps in the right direction with the help of Budget 2020. New tax reforms are expected to be unveiled in Budget 2020. The stalled projects have a cascading effect on home buyers. Usually, homebuyers stuck with incomplete projects and paying EMIs are faced with not getting any Income Tax relief due to no exemptions allowed on under-construction properties. These are some of the ways that demand can increase and will positively impact the number of units sold.[/vc_column_text][/vc_column][/vc_row]

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