India has just a few days left to witness the first Union Budget of the re-elected NDA government and the first ever presentation of the country's financial statement by the Finance Minister Nirmala Sitharaman. Experts say growth in the real estate sector seems stagnant and immediate solutions are not expected, however the government is urged to take steps to boost liquidity.
The housing sector is a key indicator of the country's economic growth, not only is it a form of easy investment but also aids employment in the country, according to experts. They believe the government needs to encourage banks to lend to developers.
Samantak Das, chief economist and head of research at JLL India, said there is an urgent need for the government to support developers. Banks need to transmit the reduction in lending rates, he adds.
Prasoon Chauhan, CEO of HomeKraft Infra, said he believes home buyers need a taxation incentive in order to stimulate growth in the sector.
The government's 'Housing for All' initiative aims at building 20 million affordable houses by March 31, 2022.
Experts have shared the percentage difference in demand in two key real estate segments.
According to JLL India findings, the luxury segment comprises of less than 5 per cent whereas the affordable housing segment (in terms of demand for number of housing units) comprises in the range of 60-70 per cent.
Whether India will achieve its 2022 mission or not is a question experts may want to avoid, however they all agree that the government must release and open up sections of land held via government undertakings and plots that are currently of no use in order to take the first step towards the dream of 'Housing for All'.