Showing posts with label finance minister. Show all posts
Showing posts with label finance minister. Show all posts

Tuesday, August 4, 2020

How to Increasing demand for commercial property in India...?

The real estate sector has been a major contributor to the growth of the entire economy and is expected to contribute in approximately 13% of the country's GDP over the next 5 years. If we talk about improving the business environment, then the commercial real estate sector can be considered a major beneficiary. The sector has been promoted with government initiatives such as RERA and GST, which allowed large institutional investors to make large investments in commercial property in India, thereby improving the overall business conditions of the country.

The continued expansion of the service sector has led to the increasing demand for office spaces and thus can be considered as one of the major growth factors of the commercial real estate segment. It is estimated that the average demand for office space across India will increase to 46 million square feet by 2021.

Policy reforms such as REITs (Real Estate Investment Trusts) will further promote the development of the commercial real estate sector by reducing the burden of capital costs of projects financed on real estate developers.

Increasing FDI in the e-commerce markets has fueled the growth of the warehousing and logistics sector and further increased the demand for commercial space benefiting the commercial property sector in India.

The retail space is also expected to witness strong growth in the coming years and is expected to grow at a rate of 25% to 30% in the next financial year. Finance Minister Sitharaman's Budget 2020 has also brought some good news for the commercial real estate sector. Establishment of new smart cities, development of around 100 new airports across the country, formulation of national logistics policy, announcement of National Infrastructure Pipeline will likely increase the demand for commercial real estate sector especially office segment.

Tuesday, May 19, 2020

Affordable Rental Housing For Migrant, Finance Minister Gives Push to Urban Poor


To relieve the real estate sector of some tension, Finance Minister Nirmala Sitharaman said that the government was extending a one-year extension to the CLSS or Credit Linked Subsidy Scheme which started in 2017 and ended on March 31, 2020. Until March 2021. This will help boost the demand for affordable housing.

The extension of the credit link subsidy scheme for a year will encourage many potential house buyers to buy houses, thereby increasing demand for affordable housing. There is currently a lot of untold inventory in the industry.

The mega-move will also help in maintaining employment as real estate is one of the largest labor intensive industries supporting around 200 allied industries. The proposed affordable rental accommodation under PPP is a welcome step. This will effectively help the issues of majority migrant laborers. Most of these urban poor live in miserable condition

Industry experts believe that the government's move to affordable housing in the last six years has been a great step forward. Its 'Housing for All by 2022' project has resulted in many soaps and incentives. In the last few years there has been a significant increase in buyer activities in the affordable segment.

Allowing new units and players to enter the affordable housing segment to build these rented dwellings, allowing manufacturing units and industries to take concessions and follow the same BOT model as road projects will do.

Monday, May 18, 2020

RERA project deadline to bring relief to developers, relaxation to house buyers interests


Although MSMEs, NBFCs and HFCs were the main focus of the Finance Minister's address, the real estate sector also received a major boost from the announcements made by Nirmala Sitharaman on Wednesday. Giving a major relief to real estate developers, FM extended the timeline for completion and registration of the project by 6 months.

The move will help the developers immensely as construction activity is grinding across the country. The wait for house buyers gets a bit long, but it was inevitable.

Including COVID-19 in the definition of “Force Measure” or “Act of God”, and the State / UT Regulatory Authority to revise the lawsuit on the moto and the date of registration and completion of projects by 6 months, in advance there is a boost for the sick. It is slated to combat disruption caused by epidemics. "This will not only provide more time for the project to be completed without any obligation for delay in completion of the project, but also prevent them from facing legal matters due to delays limited to this 6-month extension window. Will give,” a tax expert said.

While COVID-19 dissemination has been challenging for many sectors, including real estate, with many research reports in this area it appears encouraging that real estate is still considered the best investment option. This will be further strengthened by the Finance Ministry with various liquidity measures that will help reduce the rigidity currently being seen in the Indian real estate market.

In addition, the announcement of Rs 30,000crore special liquidity plan for NBFCs / HFCs and MFIs will ease the liquidity misery of stressed stakeholders. This would greatly benefit the real estate sector, given that NBFCs and HFCs are its main lenders.