Real estate is one of the most acknowledged sectors. Housing, Retail, hospitality, and commercial real estate are the four subsectors. The expansion of this industry is closely linked to the expansion of the business environment and the demand for office space as well as urban and semi-urban lodging.
After Covid Pandemic, the government of India, in collaboration with the governments of the several states, has taken a number of steps to promote development in the sector. The Smart City Project, which aims to establish 100 smart cities across India, represents a significant opportunity for real estate developers.
The following are some of the significant government initiatives for the real estate sector in 2020-21:
- The Union Budget 2021-22 extends the tax exemption for interest on housing loans up to Rs. 1.5 lakh and the tax holiday for affordable housing projects until the end of fiscal 2021-22.
- In November 2020, Finance Minister Mrs. Nirmala Sitharaman introduced the Atmanirbhar Bharat 3.0 package, which contained income tax relief measures for real estate developers and homebuyers for the principal purchase/sale of residential units of value (up to Rs. 2 crores from November 12, 2020 to June 30, 2021).
- The Ministry of Housing and Urban Affairs (MoHUA) develops an affordable rental housing complex portal in October 2020.
- India had formally sanctioned 425 SEZs as of January 31, 2021, with 265 of them already functioning. The IT/BPM sector is home to the majority of special economic zones (SEZs).
- The government announced the implementation of the Real Estate (Regulation & Development) Act, 2016 in the union territory of Jammu & Kashmir on October 27, 2020. This has made it possible for any Indian citizen to purchase non-agricultural land and property, whereas before only local residents were eligible.
- The Union Cabinet has approved the establishment of a Rs. 25,000 crore alternative investment fund to revive about 1,600 stalled housing projects throughout the nation (AIF).
- The government has established an Affordable Housing Fund (AHF) at the National Housing Bank (NHB) with an initial corpus of Rs 10,000 crore to finance HFCs using priority sector loan shortfalls from banks and financial institutions.
- The Indian government is aiming for Housing for All by 2022, citing high housing demand, and has intensified its attention on the Pradhan Mantri Awaas Yojana, particularly in rural areas.
Data Source: India Brand Equity Foundation