Thursday, 19 January 2017

Budget Expectations largely Unanimous Among Builders in Mumbai









Over the past few months, builders in Mumbai and those in much else of the country have received a huge boost from the actions of the central government. Stakeholders in the countries realty market such as realestate developers in Mumbai and homebuyers are both are expected to benefit greatly from steps taken by the central government over the past few months.

Reasons for Cheer

The passage of the Goods and Services Tax (GST) last year and the Real Estate Regulatory Act (RERA) are both expected to provide a boost to real estate in Mumbai and across the nation.

Why More Flats are expected to be sold?

Other measures by the government such as the lowering of interest rates for certain segments of homebuyers as well as nearly 70 days of the completion of demonetization both have given the realty sector a boost.

The interest rate subvention scheme which was announced by the PM as well as the announcement of lower interest rates on January 1st of this year will both lead to the purchase of more flats in Mumbai and flats in much else of the country.

Builders Want a Lopsided Budget

The realty sector has mixed views concerning the budget and many within the sector believe that a balanced budget may have a lukewarm impact upon real estate in Mumbai and elsewhere. However there have been announcements such as the exemptions in the tax slabs for homebuyers, which will lead to increasing the purchasing power of consumers and keep capital liquid and flowing within the countries economy.

Many of the top buildersand developers in Mumbai also believe that by being formally granted the status of an industry, real estate in Mumbai shall prosper as will the sector in all other regions of the country.

Opening Floodgates of Homeownership

Builders and developers in Mumbai along with those in much else of the country hope that the upcoming budget should allow first time homebuyers and young consumers to purchase their first home with ease. Tax slabs that make it possible for such consumers to buy their first home are hoped for by many builders in Mumbai and by builders across India. A question in the back of the minds of many builders in the country is whether consumers can hope to receive more tax incentives over the next five years as such incentives will make it easier to buy flats in Mumbai and flats in other large metropolises across the land.

Putting More Money in Your Wallet

Real estate industry insiders are hoping that there is good news in the form of favorable policy announcements for homebuyers who wish to buy mid level flats in Mumbai and in other tier one cities across India.

A few sentiments shared by stakeholders in real estate in India are listed below.

  • 1 Easing of tax slabs making it easier for consumers to buy property in Mumbai and in other large metros since it would increase the purchasing power of buyers.
  • 2Reduction in the taxes which middle income households pay
  • 3Changes in the income tax slabs which would make it easier for buyers to purchase a home as an investment vehicle.
 
Conclusion

Hence many real estate stakeholders such as builders and developers in Mumbai and across the country hope that the government’s actions would lead to greater purchasing power for consumers, particularly in tier 1 cities. Such an increase would allow more households to buy flats in Mumbai or flats in other large Indian metros.


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