Interpretations of the Indian real estate sector from the Union Budget

Below are some of the expectations of the Indian real estate sector from the Union Budget 2017-18:

Encouraging Developers to Build Affordable Housing Projects: The government may announce several new measures to encourage developers to build affordable housing projects to fulfill their "Housing for All by 2022" mission. If "housing for all by 2022" has become a reality, the government will have to provide tremendous incentives for the real estate sector to make homes more affordable and produce much faster to meet overall objectives. Currently, there has been no intervention from the government in terms of land acquisition or land development costs which remain high.If the government can work towards reducing pain for these budget housing segments, more relevant housing units will be built quickly and successfully by private developers. In addition, the government is required to expand the scope of External Commercial Borrowing (ECB) for construction finance for a broad range of housing projects and is not limited to low cost / affordable housing. Tax benefits should be relaxed further for home buyers. For the first time all home loans should be revised to include all home loans up to Rs 3,00,000 including interest and not limited to a value of only Rs 50 lakh. The government has already announced benefits of home loans to low-income people by providing a rebate of up to 4 percent on home loans of 12 lakh taken under the Pradhan Mantri AwasYojana.

                                                                                                 

To grant industry status to the Indian real estate sector: The demand for granting industry status to the Indian real estate sector has been pending for some time. Directly or indirectly, the real estate sector contributes more than 15% of India's GDP. Developers are forced to borrow at high interest rates in the absence of industry status. Due to high borrowing costs and non-availability of funds, construction activities are delayed and hence the cost of houses increases. Once the status of the industry is given to real estate, it will become easier to make affordable housing a dream for all. So far, the affordable housing target is far behind and this can only be achieved if the sector gets industry status which will help drive housing demand in India.

Clarity on GST: While the Goods and Services Tax (GST) tax structure has been announced last year, the clarity of GST as to which tax rate will be applied to the real estate sector is still awaited. This will define the way in which the real estate sector will grow in this financial year. A GST clarification will also be required on the abatement scheme and whether credit for input tax will be allowed if the composition scheme is availed by the developers.

Single window clearance for the real estate sector: Developers have long been demanding for single window clearance to address delays in government approval. If developers are able to get all the necessary approvals on time, then they are able to execute their projects on time and this will also reduce the cost of homes. Therefore, to avoid unnecessary delays in construction and to reduce the cost of homes, single window clearance is required.

Need to increase house rent deduction limit: Salaried individuals receive House Rent Allowance (HRA) as a component of their total salary, and can therefore claim substantial deductions in cases where the salary and its HRA component are high. However, a salaried person or a self-employed person without an HRA component or those making lump sum payment without an HRA component can only claim a maximum deduction of Rs 5,000 a month under Section 80GG. This budget should address this variation in house rent reduction limits.

To make tax slabs and tax reporting easier: Government can focus on easing tax reporting structures. In addition, the benefits of demonetization practice should be extended to the common man through relaxation of tax slabs and offering higher level of exemption. The idea is to reduce the actual tax incidence as well as broaden the scope of tax, with the stated intention of reducing corporate tax.

Apart from the above points, the real estate sector is expecting some more announcements in the Union Budget 2017-18, such as higher tax savings on income tax sups, housing loans and house insurance premiums for first time home buyers and providing clarity on beneficiaries Under the Pradhan Mantri Awas Yojana etc.

Who are the top 10 builders in Bangalore? Learn more. Top 10 Builders in Bangalore

Planning to invest in your dream house in Bangalore but not sure which builder to choose?

Here is the list of top builders in Bangalore that will help in your property search. These developers are innovators in their field and have core experience in the real estate market, serving for over a decade. His experience has already earned him huge encouragement and customer support to help him reach heights of success over the years.

Each of his projects will feature unique designs inspired by the history, history and contemporary style that attracts their residences to experience the outstanding architects here. Below is the list of top 10 builders in Bangalore.

Sobha Limited: Sobha Developers is one of the leading real estate companies in India. Primarily, the company focuses on residential projects. SOBHA's footprint is spread across ten cities, such as Bengaluru, Chennai, Coimbatore, Gurugram, Gujarat (Gift City), Kozhikode, Kochi, Mysore, Pune and Thrissur. SOBHA's portfolio includes presidential apartments, luxury, and super luxury apartments, plotted developments, aspirational homes, villas and row houses.

Godrej Properties: Godrej Properties is the real estate wing of the Godrej Group. The Godrej Group offers an assortment of services including real estate development, fast moving consumer goods, advanced engineering and so on. It has garnered over 200 awards and recognitions over the years. Godrej Properties won the title of 'Real Estate Company of the Year' at the Construction Week India Awards held in 2015.

Godrej Properties is active in 12 cities in India. This real estate developer strives to create lasting value for its investors. Over the years Godrej Properties has built homes that are comfortable and luxurious.

Prestige Group: Prestige Group has carved out a niche in the real estate domain by influencing its mark in several asset classes. The Prestige Group completed about 210 completed projects, 53 ongoing projects, and they also have several upcoming projects. Prestige Group is now expanding to other South Indian cities like Mysore, Mangalore, Chennai, Hyderabad, Kochi and Goa.

Brigade Group: Brigade Group is one of the leading property developers in South India. They have a uniquely diverse multi-domain portfolio covering property management services, hospitality, property development and education. His projects span several major cities of South India such as Chennai, Hyderabad, Mangalore, Kochi, Chikmagalur and Mysore.

The Brigade Group has a wide range of residential portfolios including luxury and super-luxury apartments, penthouses, villas, independent living spaces for seniors and so on.

Salarpuria Sattva Group: The Salarpuria Sattva Group mainly focuses on developing high quality construction. The group has a portfolio of various world-class IT parks, residential, commercial, retail and hospitality properties.

Artha Group: As of today, Artha Group is the fastest growing real estate company in South India. Earth Group offers exceptional and novel concepts to its investors and homes that are precisely tailored. The group has won various awards and has also been awarded Power Brand status by the esteemed Brand Finance Institute, UK.

Puravankara: Puravankara believes that there is only one mantra for success and that is quality. They mainly focus on rigorous values, strong engineering, customer satisfaction and transparency in business functions. Purvanchal is known as the "most preferred" brand in both the residential and commercial sectors. Currently, the company has 29 million sq ft of projects under development, with an additional 88 million sq ft in projected growth over the next 7-10 years.

L&T Realty: Larsen & Toubro is present in North, South and West India with several residential, commercial and retail projects. The company is creating places of excellence through the development of several buildings, business parks and transit-oriented developments such as Navi Mumbai- Seawoods Grand Central. Being an environmentally friendly real estate developer, L&T always focuses on developing environmentally sustainable locations and campuses.

DDA (Delhi Development Authority) housing scheme over 50,000 applications

DDA Housing Scheme 2019 which was launched in March 2019 and the last date for application extended till June, 2019. The Delhi Development Authority (DDA) is expecting that more than 50,000 applicants have applied for their housing scheme 2019.

According to DDA Vice President Tarun Kapoor, since people have applied for the scheme through various banks, it was difficult to compile the data on the same day. But as per the application money collected by these banks till last week, they have received more than 50,000 applications. Therefore, there are no plans to extend the DDA Housing Scheme deadline for this scheme. It is expected that by the evening the final figure will be out and it may take about 2-3 days to compile the amount collected.

Around 1,800 DDA flats in Vasant Kunj and Narela are being offered under the DDA Housing Scheme 2019. Of the 1,800 flats, there are 450 for High-Income Group (HIG), 1,550 for Middle-Income Group (MIG), and 8,300 for short. Low Income Group (LIG) Flat in addition, 7,700 flats were offered under the Economically Weaker Section (EWS) category. Most applications for flats in Vasant Kunj are likely to come up.

At the same time, DDA has offered 2,000 flats under the old scheme, which have been fully booked, while around 1,000 flats are still available under the old scheme. These old inventions are still available and interested stakeholders can book them online. This offer is on a first come, first served basis and the online portal will remain open till the inventory ends.

In 2014, DDA received 1 million applications for 25,000 DDA flats in the low income category in Narela and Rohini. But due to lack of infrastructure, poor connectivity to housing complexes and the extremely small size of LIG flats, around 13,000 flats were returned.

Check the registration fee for each category of flats available under DDA Housing Scheme 2019:-

·        Janta Flat- Rs 10,000

·     1BHK- Rs 15,000

·     EWS- Rs 25,000

·     LIG- Rs 1 lakh          

·     MIG/HIG- Rs 2 lakh

Applicants who can apply for DDA Housing Scheme 2019. The eligibility for this is as follows:-

• Applicant should be a citizen of India.
• The applicant age should not less than 18 years.
• The applicant should not have full or partial ownership of any residential house or plot in New Delhi, Delhi or Delhi Cantonment on leasehold / freehold basis, either in his / her own name or that of his / her wife / husband / minor /name dependent children.
• However, if the applicant's share in the land under a jointly owned plot or residential house is less than 66.9 square meters, he can apply under any scheme.
• A person who has already been allotted a house / flat constructed by DDA or any other land / own agency, even if it is less than 66.9 square meters, will not be eligible for allotment under any scheme of DDA.

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