The pandemic and the series of lockdowns effectively deepened the challenges facing the real estate sector over the last few years, with the economy, taxation, and industry reforms bringing in a paradigm shift.
It is, for that reason, apparent that something ‘more than average’ could be wanted for real estate to restart. Other than lengthy-pending troubles like smooth availability of low-fee credit score as also a last-mile investment for stressed, delayed, and delayed the project, the key is having the client return to the actual estate income office and make the ‘buy’ selection.
‘Jaan, followed through jahaan’, the prime minister had emphasized—saving lives, then saving livelihood. With the low return to economics, it is obvious that no business might be able to recoup its losses and recover to the pre-COVID-19 scenario speedily: guide-measures from authorities are, accordingly, needed. For real estate, there are two sets of measures: those that impact the economy in general and those that are specific to real estate. The measures to positively affect the economy include together with the Brocken-supply chain, making sure to go back of migrant labour to urban centers and growing a situation where the common people have the cash to spend in his hand.
For ‘money to spend’, the only option is to reduce GST on diverse goods and services. Industry bodies like ASSOCHAM and NAREDCO have introduced a 50% discount for a fixed tenure—say, six months. This being completed, it will make sure that the customer has the purpose to spend in the present (lower tax if she/he buys now), at the same time as lower taxation rates impose extra money in hands. This effectively will enhance the quantum of products and services bought throughout the economy.
Money going to many sellers and producers as a result of lower GST will result in more transactions, effectively increasing the demand-side, in turn creating need to produce more. This will not just increase jobs across segments like manufacturing, logistics, and sales, it also increased demand for raw materials. This decision has the potential to positively impact the whole rate of recovery. For real estate, it will incentivize the ‘fence-sitters’ to stop procrastinating, and take a ‘buy’ decision.
Lowering stamp duty and registration fees on real estate will make a major difference, and bring again traction to sales. Similarly, a discount on home loan interest prices as also enhancing taxation advantages on repayment of home loans will enhance the effective effect. Rationalizing cess, obligations, and charges for permissions and clearances will reduce the difficulty on the developer. It is about a sequence of measures that take ‘ease of doing business and ramp this as much as ‘encourage further business growth’.