Real estate players seek industry status

Indian real estate developers and property consultants are demanding industry status to the realty sector in the forthcoming Union Budget.
They are also seeking incentives to promote affordable housing segment and an increase in the tax exemption on housing loans.
To give an incentive for supply, they are also asking for a single-window clearance for realty projects and foreign direct investment (FDI) in multi-brand retail sector to ensure more demand for retail space in shopping malls.
Global Property Consultant Jones Lang LaSalle India Chairman and Country Head Anuj Puri is of the view that since the realty sector is a major driver for the nation’s economic growth and it generates numerous jobs across its various verticals and associated industries, the government should grant industry status to the sector.
He also batted for relaxing norms for repatriation of FDI in real estate to woo more investment in the sector.

Airing similar views, another property consultant DTZ said that the upper limit of housing loans eligible to priority sector lending should be raised keeping in view the property rate.

DTZ has also pitched for an increase in tax exemption on housing loans to stimulate demand of the end users.
At present, the ceiling under tax benefits is kept at Rs 1.5 lakh in case of total interest payable on the home loan and Rs 1 lakh for principal paid.
The Confederation of Real Estate Developers' Associations of India (CREDAI) has appealed to the government to boost affordable housing segment and address the issue of high land cost and taxation issues.