The Real Estate sector has played a key role in the revenue of the government both at thestate level as well as the national level. The newly rolled out tax structure like the GST has not been very kind to this sector. The demand for houses has dropped drastically due to the enormous increase in the taxes. The Realty comes under the 18% tax slab,and the abetment of land takes about 1/3rd. The sector that plays a key role in the economy has certain needs and expectations from the Union Budget that is all set to be announcedon the 1st of February 2018.
Industry status to Realty sector
A sector that has existed in India for a long time that still was not given the status of an industry has been a demand for a few years now. The industry status would fetch the following benefits
- The Realty being the fourth largest employment generator in India would create more jobs both directly and indirectly.
- There has been a significant drop in the buying of homes due to the increased rates of the property. The industry status would help the developers to raise funds at much lower rates that will reduce the cost of the project that will have a great impact on the demand for the property.
The realty sector in Gujarat is a thriving industry. For a state that has a lot of infrastructure-related projects in its kitty, the Gujarat Budget for the FY 2018-19 would give a push to the realty sector that has been one of the main factors of development of the state.
Incentives for green buildings
The increased levels of pollution in major cities of India due to urbanization have introduced the concept of green homes keeping the future of environment and health of citizens in mind. The construction of a green home would cost much more than that of a normal home. These incentives provided by the government for the construction of green homes would only boost up the number of green homes in the cities to curb pollution menace.
Reduction in tax to boost infra projects
PradhanMantriAwasYojana that promotes Housing for All to bring the homeless in the urban areas under the roof, BharatMala Roadways project are some of the high budget infrastructure projects of the government that would play a significant role in increasing the GDP of the economy.
Thus, these can be stated as some of the needs and expectations from the Realty sector that would prove to be beneficial for the economy as well.