Real estate has been one of the worst-hit industries by COVID-19. Projects haven’t been delivered. As the pandemic sets to fade in, what can budget 2021 can do to fix the governing mess in the industry?
Moreover, slow construction activities, dip in demand, unavailability of labour, and extended lockdowns added to the woes of the real estate sector. The government of India is standing during the hard times to boost the profitability of this industry. Still, there is some more favours budget 2021 can do for the real estate sector.
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The government of India has taken some significant steps to boost the liquidity of the taxpayers. This move has motivated many prospective home buyers to fulfil their dream of purchasing Residential Apartments in Jaipur.
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The Finance Minister also announced some indirect financial support to the nation’s infrastructural development. It will boost the capital appreciation of the surrounding properties.
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States like Karnataka and Maharashtra have slashed the stamp duty charges on property registration. It is done to boost the slow real estate sales in 2020. Other state governments are also planning to implement the same in their states. This move will boost real estate demand.
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The real estate sector has been demanding the status of an infrastructure for a long time. Currently, it has been given only to affordable housing projects. It enjoys benefits like tax concessions, lower borrowing rates, and improved private capital. The industry now demands to include holiday homes and secondary homes into this category. This move will immensely help in fundraising for several projects.
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The government of India offered to set up AIF – Alternative Investment Fund of Rs. 25,000 crores to provide relief to incompleted housing projects. Further capital addition will help in developing the real estate industry further.
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The government is also taking steps to encourage NBFCs’ and banks to provide more liquidity to the industry. It will help the real estate builders in delivering high-quality projects on time. Buyers can also rejoice as they will get many more investment options in the future.
These were some of the things that budget 2021 can do for the real estate sector. All the measure proposed above serves only one purpose that is to boost investment in flats in Jaipur. Last but not least, the government should focus on the comprehensive development of the real estate industry.
