Real Estate Sector has forward and backward linkages with over 250 different sectors, as well as it ranks 2nd in employee generation after agriculture. This sector also adds up to a significant number in our country’s GDP with 0.78x.
With such data to back up the real estate sector the time is right to explore its complete potential as real estate sector correlation in other large economies like the ones of China, US, UK, Germany and Spain is at least 0.9x.
One of the major factors that have been affecting real estate market has been the large demand and supply mismatch, and our government need to take several real time steps to make sure that this mismatch gets dissolved.
Major Policies Introduced
• Projected announcement of around six crore houses under the scheme launched by P M Modi, “Housing for All 2022”. With around four crore houses to come up in Rural Areas while two crore
houses in Urban Area.
• One Lakh kilometres of road in FY 2015-16 has already been sanctioned and is expected to be build by FY 2015-16.
• With great policies like setting up of National Investment and Infrastructure Fund to be funded by INR 20,000 Crore annually.
Major Direct Tax Proposals
• With the corporate tax rate to be reduced by 25% in a phased manner over a period of four years from FY 2016-17, with corresponding phase out of tax incentive/concession.
• Wealth Tax to be abolished by FY 2015-16.
• Tax provisions relating to Alternate Investment Fund rationalised to facilitate over sea investments in India.