Budget 2020 lacks to resolve major issues faced by the realty sector.

Real Estate developers and property consultants shared their disappointment about the Budget for the next fiscal and said they did not address the sector’s tremendous liquidity problem and gave no significant opportunities to raise slow housing sales.

“The budget direction is incremental but the sector-specific measures for the real estate sector are not in effect,” said Jaxay Shah, CREDAI National Chairman.

He appreciated the government’s decision to expand the tax benefit to increase demand and supply of affordable housing but said that the industry looked forward to a rental policy and a one-time expansion of the developers’ credit to abolish the 45 lakh cap in the concept of affordable housing.

“The liquidity problem which is a major issue for the economy in general and real estate in particular, here too, no significant relief can be seen,” said NAREDCO President Niranjan Hiranandani.

Satish Magar, President, CREDAI National, stated: “Budget 2020 did not encourage the Indian real estate market, which needs government immediate attention. No sector-specific action on real estate has been announced.”

“As the industry, we needed further radical measures from the government in order to boost the distressing sector including the provision of more liquidity for the industry, onetime restructuring of loans, and tax deductions on home loans, in order to encourage consumers to feel like they are. Unfortunately, none of these problems is addressed apart from providing affordable housing developers and loan sanctioning with an extra year tax holiday – which have been due for some time,” he added.

Anarock Chairman Anuj Puri said the budget lacks the real estate sector’s ‘quick fixes’ that is urgently needed and is more focused on a long-term vision. “In addition to the affordable housing initiative and personal tax relief, no big advantages came in to solve the current housing issue.”