HYDERABAD: Hoping to catch momentum in the real estate sector after the recent announcements by Finance Minister Nirmala Sitharaman, realtors have welcomed the government's decision to roll back higher surcharge on Foreign Portfolio Investments (FPIs).
However, they want the government to take more policy-level decisions to revive the development sector.
The real estate sector has witnessed a considerable decline in recent years, especially after the previous Union Budget. They now hope to see momentum in the market with foreign and domestic investments in portfolio investments, and rate cuts by Reserve Bank of India to borrowers.
Speaking to Express, Ravi Varma, chairman, National Association of Realtors (NAR), said that it was a good sign the finance ministry has taken suggestions from industry experts and acted accordingly. Reviving the real estate industry will also help revive the economy, he added.
"Are we doing enough as the second largest employers of the country? I would say no. A little more needs to be done, however, listening to feedback and taking corrective action is the right thing to do." Talking about the hurdles that the industry is facing, he said, GST issues have to be addressed.
"As far as a brokerage is concerned, it is 18 per cent GST, which is almost one-fifth of the total cost. So, people either don't pay us or they say that you included an additional amount in the bill. It's a straight loss for us," Varma said. He further pointed out how at times, property buyers wish to pay in cash, which is contrary to the government's policy.
He demanded that the GST slab should be reduced for the real estate sector to a much greater extent, and was hopeful that the government would take a decision in the coming week.
Rahul Singhal, a Hyderabad-based developer said, "The stock market would gain at least 1,000 points by next working day (Monday). The finance ministry's decisions certainly help the buyers as well. It would bring down the EMIs for loan seekers, bringing huge relief."
On Friday, the finance minister announced an upfront Rs 70,000-crore worth of equity infusion into public sector banks to boost lending, and Rs 20,000 crore for the housing finance companies by the National Housing Bank (NHB).