Amongst enormous buzz created around the new Union Budget by the new government, created by Pre-Budget statements from the who’s who of the industry, we at Emaar MGF view this Union budget, to be positive for the growth of the economy in general and real estate sector in particular. In the long run it will help in facilitating the growth of the real estate sector.

Introduction of REITs is the biggest positive move for the commercial real estate market, which was overdue for long, which will be set up in accordance with SEBI guidelines.” It has potential to bring in a large segment of new investors to the market and at the same time the government is opening up a new avenue for saving and retirement planning for individuals,” said the spokesperson of Emaar MGF group. The developer fraternity will be benefitted from creating additional business opportunities and will also improve the business sentiment in the satellite towns of the metros and large cities.

The government has provided relief to the realty business by ensuring certainty in the tax regime. It is a welcome move that no change will be made in the tax laws. The MGF spokesperson also added,” The proposal to strengthen authority for advance ruling in tax is also one such step in the same direction.”

The Union Budget had measures to enhance, the ease of doing business, like simplification of rules and compliances for businesses. He also said, “We would have liked to see some of similar measures taken in the Real Estate sector as well, especially to do with the procedures regarding TDS on purchase of property.”

The Realty Industry had expected the Tax Exemption on home loan to be enhanced to around 3lacs, but it was only increased to 2lacs, which is a marginal change but nevertheless a positive change. Overall we feel that the budget will support the real estate market and boost buyer-investor sentiment.