Real estate sector should be accorded top priority status in budget, say developers

KOLKATA: The real estate sector should be accorded top priority status in the upcoming budget to boost employment and growth of the economy, developers said here on Friday.
The construction industry has proven itself a "resilient sector against the pandemic", and is now riding on a positive growth trajectory, they claimed.
The sector is expected to reach a market size of $1 trillion by 2030, and will contribute around 13 per cent to the GDP by 2025, a builder said.
“The real estate, a resilient sector, should be accorded top priority status in the budget to boost employment and growth of the economy,” Credai West Bengal President Sushil Mohta said.
Shristi Infrastructure Development Corporation CMO Abhishek Bhardwaj said there is demand in the industry to redefine affordable housing.
"We expect that the government will relook at the definition of affordable housing both from the value of houses and size to provide a much-needed boost to the sector,” he said.
Credai appealed to the Centre to enhance the cap of Rs 45 lakh to Rs 1 crore for affordable housing in metro cities.
"The Credit Linked Subsidy Scheme benefits should be extended to all segments up to middle-income group II level as it has been extremely helpful for people at large as they are feeling the need for buying their own home. Further tax breaks for organisations building affordable housing will be of great support in these difficult times” Eden Realty managing director Arya Sumant told PTI.
Siddha Group managing director Sanjay Jain said developers want the government to help them with a single-window clearance system for affordable housing and projects for people belonging to the middle-income bracket, "which are stuck at the advanced stages of development".
Ideal Group managing director Nakul Himmatsingka said, “Relaxation in GST on under-construction projects will help reduce the overall cost burden as it doesn't attract input tax credit. This will encourage sales.”
Mohta, who is also Merlin Group chairman, said the budget could focus on "amending Section 80C of the Income Tax Act, 1961 to increase the repayment time limit for housing loan principal".