The Indian real estate has put down some expectations from the Union Budget 2012-13. According to Anuj Puri, Chairman and Country Head, Jones Lang LaSalle India, in commercial real estate there is a need of revised DTC which will have strong implications on SEZs.
Further looking at the growth of IT/ITES in tier I cities, the Government should actively roll out an incentive-based IT policy (such as STPI) for tier 2 and tier 3 towns as well.
While in residential arena, he added, “The scope of interest rate subsidy should be amplified and broadened to include a wider price band of budget housing to benefit home buyers, especially in lower income groups. More funds should be allocated to the Rajiv Awas Yojana (RAY) for urban housing targeted at the EWS and the LIG sections.
For retail real estate, FDI should be relaxed upto 51% into multi-brand retailing. Indian retail will benefit greatly from increased spending in back-end logistics infrastructure and growth of organised retail
“The government should grant industry status to real estate, since the sector is a major driver for economic growth and generates countless jobs across its various verticals and associated industries. Moreover relax norms for repatriation of FDI in real estate,” said Puri.
“There is a need to enact legislation on REITs to provide exit opportunities to real estate investors and also to bring out strong and convincing evidence of intention to implement the proposed real estate regulator in 2012, and provide single-window clearance for real estate development projects,” he concluded.