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Key Real Estate Expectations: Union Budget 2019-20

Real Estate industry of India, which is reeling under the pressure of financially crisis and slump in home buyer’s confidence, is expecting the union budget 2019, to be presented on 5th July 2019, to give much drive to the slow moving sector.

In its last union budget of the 1st term, the ministry had provided some inducement to address the stress on both demand as well as supply side. But the real estate industry expected a lot more is needed to take the sector out of the clutched to the slump it has been in the last few years. So here are few of the key expectations of the industry from the upcoming (Presented on 5th July 2019) union budget

Some Important Expectations of the Industry are:

  • No cap for residential property: the limit set-out for loss from residential property of 2 Lacs* should be closed at least for rented housing property
  • Reinstall ITC (Input Tax Credit) and extending it to the commercial segment against Good Service Tax (GST) payable on rent of few projects or any other rental property
  • Affordable Housing Scheme: Further extension should be given for availing benefits falling under sector 80 IBA
  • Elimination of TAX on the unsold inventory
  • Elimination of Good Service Tax (GST) pay by the landowner in a JDAs (Joint Development Agreement)
  • Framing a National Rental Housing Policy in order to meet the target of Housing for all Indians

Overall, these measures would expectation, accelerate the pace of ongoing consolidation in the real estate sector and ultimately benefit the organised and compliant real estate developers.

July 1, 2019 / by / in ,
NBCC needs 8500 crore to complete Amrapali Projects

According to proposal submitted by NBCC (National Buildings Construction Corporation Ltd) in Supreme Court, it will require about 8500 crore to complete 46,575 unfurnished flats and will take about three years to do so. The cost includes NBCC fee of about 774 crore. While selling off unsold flats can generate money to the tune of Rs 4,885 crore, the remaining Rs 3,853 crore would have to be raised to meet the total amount required to complete the flats left unfinished by Amrapali builders.

According to affidavit previously filed by Amrapali, it was informed that Rs 5220 crore are needed to complete all these projects. The major difference in the estimate cost of NBCC and Amrapali is in the completion of Leisure Valley Rs 500 crore approx. and Golf Home Rs 700 crore approx. NBCC will act as a project management consultant (PMC) while the construction and completion will be done by contractors. The company however clarified in the proposal that it will not be responsible for Amrapali’s liabilities.

As of now, NBCC has taken the burden of constructing the remaining unfinished Amrapali housing projects within the next three years.

September 5, 2018 / by / in , , ,