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The <keyword id="6543013" type="UNKNOWN" weightage="20" keywordseo="real-estate-sector">real estate sector</keyword>, which was already not facing any momentum, has been hit hard due to <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> also. 
 Post demonetisation, home buyers are waiting for correction in <keyword id="35507" type="UNKNOWN" weightage="20" keywordseo="property-prices">property prices</keyword>, which is why developers have stopped getting queries too. 
 
In a bid to revive the property demand, the developers have started assuring home buyers of compensation, if prices go down. 
 
Apart from this, deals in the secondary market have also come down. 
 
Prakkash G Rohiira, director, Karma Realtors, a property brokerage operating in Mumbai, told ET most homebuyers are in a wait-and-watch mode because they expect prices to come down. "This expectation is drawn out of confusion, and not out of clarity. Realty developers are trying o provide stimulus to the market with price-guarantee schemes so that he market gains momentum. Enquiries for projects offering price guarantee schemes have improved over the last few days," Rohiira told ET. 
 
"With reduction in interest rates of anywhere between 1% and 2%, EMIs will go down by 10-15%, which will be a massive boost to all consumers. We are confident prices will not go down. On the contrary, demand for good quality development by Grade A developers will increase. To give customers the confidence that we actually believe in this, we are happy to provide a guarantee that there will be no such reduction in prices, and if in the next three months there is any, we will pass on the benefit to them," Abhishek Lodha, MD, Lodha Group, told ET.

Demonetisation has hit real estate sector hard, builders are willing to compensate to attract buyers

New Delhi, Realty firm <keyword id="143494" type="General" weightage="20" keywordseo="Mahindra-Lifespace" source="Orion">Mahindra Lifespace</keyword> Developers Ltd on Friday reported a consolidated net loss of Rs 18.93 crore for the second quarter ended September on lower income. Its net loss stood at Rs 7.51 crore in the year-ago period. Total income declined to Rs 25.7 crore during the July-September period of the 2023-24 financial year from Rs 73.82 crore in the corresponding period of the previous year, according to a regulatory filing. Mahindra Lifespace is the real estate and infrastructure development arm of the business conglomerate Mahindra Group. On the operational front, the company said it achieved pre-sales of Rs 455 crore in residential business. It launched 0.47 million square feet of saleable area at Tathawade Phase 3 in Pune. The company collected Rs 311 crore in residential business. Mahindra Lifespace achieved land leasing of 9.9 acres in the industrial business for Rs 32.2 crore. The company's development footprint spans 34.46 million square feet of completed, ongoing, and forthcoming residential projects across seven Indian cities. It has over 5,000 acres of ongoing and forthcoming projects under development and management at its integrated developments and industrial clusters across four locations.

Mahindra Lifespace posts nearly Rs 19 crore loss in September quarter

India is undergoing a demographic transition and gaining economically from the changing age pattern. India’s youth population (15-32 years), comprising nearly 40% of the urban population, is fast becoming a new set of consumers for whom marketers are working their way up to please and delight. 
 
With their inexhaustible and ever-increasing demand for the very best, and their disposable income literally soaring, these young people now aspire as much or even more than the ‘more established’ older generation. This is putting a compelling pressure on new-age marketers to give them nothing less than the ‘best.’ 
 <keyword id="6354553" type="COMPANY" weightage="40" keywordseo="real-estate">Real Estate</keyword> in India has been one of the fastest growing sectors but an unregulated one, at best. Till date, <keyword id="6354185" type="ENTERTAINMENT" weightage="80" keywordseo="IT">it</keyword> has been plagued by critical issues such as absence of standardisation, lack of adequate knowledge-sharing and more. That’s why the sector has mostly witnessed a not-so-healthy and disorderly growth. 
 
So how could Big Data help in this context? Understanding Big Data fundamentals has now become all the more important for organisations that are aiming to automate their business processes and are capturing all client interactions. Of late, India has seen a huge surge in ERP adoption across industries and that too, in the SME segments. A Gartner report published in August 2013 states that SaaS-based ERP is going to grow by 28% CAGR in India for the next five years. 
 
India’s real estate sector has specifically adopted and will continue to adopt the SaaS ERP route to manage end-to-end business processes, client interactions and ever-growing data. The key consultants and developers in the Indian realty space fully comprehend the requirement for ERP/CRM solutions. 
 
Realising the large gap in this sector, organisations are bringing in a fresh wave of change by launching IT solutions for real estate consultants. Today, most of these professionals are catering to the affluent young buyers and they require organised and systematic processes to come up with the best possible offers. In a bid to introduce a professional approach in their everyday workings, innovative IT solutions providers are now helping new-age consultants in changing and resetting their business ground rules. 
 With the availability of ERP systems, comes the need to connect with business partners. But that could be easily taken care of as social media has already made inroads into the country in a big way. In <keyword id="45145" type="ORGANIZATION" weightage="80" keywordseo="2014">2014</keyword>, business solutions built around social interactions will reach the SMEs without any hassle. Also, private social networking for business will become a major channel to close business deals among SMEs. Solutions likes Closemydeal.in, which caters to a specific group of SMEs (in this case, real estate consultants), will become even more prevalent. 
 Combining ERP/CRM and social media, social features will be embedded in internal CRM/ERP solutions as well and will become a part of any digital communication with clients/employees. E-mail communication will slowly take a backseat in favour of social media tools, which can reach out to a wider audience in an organised manner. Thus, chances of closing a deal at the earliest may soon become a <keyword id="6371213" type="PERSON" weightage="80" keywordseo="reality">reality</keyword>. The year 2014 will be the year of ‘social revolution’ in the real estate space where consultants will close more deals by reaching to their professional peers and the new breed of consumers – the youth of today who aspire to be upwardly mobile and social, with ready disposable incomes. 
 
With the telecom revolution happening fast in India, SMEs will have better access to world class data centres while Indian organisations, leveraging their local market knowledge, will be providing more innovative ERP/CRM solutions. 
 
In a nutshell, IT will make more impact for the SMEs, mainly in the real estate space, which will attract more skilled professionals in this sector. This will further propel the delivery of services in the real estate sector. 
 
About the author: Anupam Saha is co-founder and business head of RealtoExpress, an IT solutions provider firm catering to the real estate industry. He is an IITian with 25 years of industry exposure in India and the US.

IT
Trends To Watch Out For In Real Estate Sector In 2014

<ul class="summary-list"><li><keyword id="13695629" type="UNKNOWN" weightage="60" keywordseo="cfra" source="Orion">CFRA</keyword> raised its rating on the <keyword id="11898248" type="UNKNOWN" weightage="60" keywordseo="sp-500" source="Orion">S&amp;P 500</keyword> <keyword id="13695628" type="UNKNOWN" weightage="60" keywordseo="real-estate-sector" source="Orion">Real Estate sector</keyword> to marketweight from underweight on Friday. </li><li>The investment research firm said <keyword id="6425786" type="UNKNOWN" weightage="60" keywordseo="reits" source="Orion">REITs</keyword> are a strong hedge against <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword>, which has kicked up to a 41-year-high of 8.5%. </li></ul>It's time to consider buying <keyword id="11893295" type="UNKNOWN" weightage="60" keywordseo="real-estate" source="Orion">real estate</keyword> stocks, in part as a hedge against inflation that's recently scaled up to a 41-year high, investment firm CFRA said Friday in upgrading the sector.The S&amp;P 500 Real Estate sector has dropped about 3% so far this year but is outperforming the broader <a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">S&amp;P 500 index,</a> which tilted again Friday toward correction territory, or a loss of 10% or more from recent highs. In a note, CFRA raised its recommended exposure to the sector to marketweight from underweight but did not name individual stocks in its ratings change. The sector includes real estate management and development services. Real estate investment trusts, or REITs, are "a strong inflation hedge, with sub-industries that issue short-term leases able to adjust quickly to rising prices," wrote Sam Stovall, chief equity strategist at CFRA. US inflation in March <a href="https://www.businessinsider.com/inflation-cpi-march-price-growth-report-gas-food-costs-climbing-2022-4">accelerated to 8.5%</a>, the fastest increase since December 1981, led by sharper prices for gas, shelter and food.REITs can benefit from price increases for rents and from higher real estate values during hotter inflationary periods. But REIT stocks have been volatile this year, said Stovall. "This volatility has been further amplified recently with the yield curve inversion signaling an increasing likelihood of a recession in 2022 or 2023," he said. Yields on US Treasurys have climbed this year as investors price in expectations for the Federal Reserve to aggressively raise benchmark interest rates to tamp down on inflation. Shorter-dated bond yields, which are most sensitive to interest rate changes, have been rising above those on some longer-dated government bonds, indicating heightened worries about the <keyword id="11893570" type="UNKNOWN" weightage="60" keywordseo="economy" source="Orion">economy</keyword>. REITs collectively owned more than $3.5 trillion in gross assets across the US, <a href="https://www.reit.com/data-research/data/reits-numbers">according to industry group Nareit</a>.

It's time to buy REITS to hedge against inflation, even though the real estate sector has struggled so far this year, says investment research firm

Good morning, readers. I'm Phil Rosen, reporting from New York City. The bank turmoil we saw in March feels like some time ago, but top strategists are warning that more consequences are still ahead. If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-opening-bell">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here.</a><a href="https://markets.businessinsider.com/news/stocks/banking-crisis-regional-banks-commercial-real-estate-credit-crunch-jpmorgan-2023-4"></a>1. Regional banks' recent troubles are just the beginning — at least, that's what a chorus of Wall Street folks have been saying this week. JPMorgan Asset Management's Jonathan Liang said Wednesday on Bloomberg that smaller banks now face an <a href="https://markets.businessinsider.com/news/stocks/banking-crisis-regional-banks-commercial-real-estate-credit-crunch-jpmorgan-2023-4?_gl=1*1wv53kq*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MTkyNDM1Ni40MDIuMS4xNjgxOTI0NTgwLjUwLjAuMA">increased risk of credit losses</a> because of their heightened exposure to the commercial real estate debt. Nearly $450 billion in commercial mortgages are due to mature this year, with final payments due in the coming months for many property owners, according to Trepp data cited by JPMorgan."We think the story in banking is not over yet," Liang said. And Goldman Sachs' global head of real estate client solutions, Jeffery Fine, recently said the commercial real estate market is in the <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-interest-rates-fed-credit-crunch-debt-goldman-2023-4?_gl=1*1xthgpb*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MTkyNDM1Ni40MDIuMS4xNjgxOTI0NTcwLjYwLjAuMA">middle of a "perfect storm" </a>of higher rates, tight credit, and fast-maturing debt. The market faces a "big rightsizing" that must be confronted, Fine said on Goldmans' podcast, and he anticipates a <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-interest-rates-fed-credit-crunch-debt-goldman-2023-4?_gl=1*1xthgpb*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MTkyNDM1Ni40MDIuMS4xNjgxOTI0NTcwLjYwLjAuMA">drop in valuations in older properties and office buildings</a>. Remember, the Fed's nine consecutive interest rate hikes have made borrowing more costly, and commercial property owners will likely be trying to refinance their loans at higher rates than when they originally took them out. On top of that, many experts say that <a href="https://markets.businessinsider.com/news/stocks/credit-crunch-us-bank-crisis-stock-corporate-earnings-recession-svb-2023-4">a credit crunch has begun</a>, and loans are going to be generally harder to come by. The Goldman strategist said <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-interest-rates-fed-credit-crunch-debt-goldman-2023-4?_gl=1*1xthgpb*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MTkyNDM1Ni40MDIuMS4xNjgxOTI0NTcwLjYwLjAuMA">securing commercial real estate loans</a> now is "almost impossible" since financing has just about shut down."Over time there's going to have to be a very organized public and private partnership to figure out a <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-interest-rates-fed-credit-crunch-debt-goldman-2023-4?_gl=1*1xthgpb*_ga*ODkwODI1NzUwLjE2MzU3Nzg0NDE.*_ga_E21CV80ZCZ*MTY4MTkyNDM1Ni40MDIuMS4xNjgxOTI0NTcwLjYwLjAuMA">careful unwind</a> of this current dynamic," he added. "Otherwise, we have a very messy situation on our hands."What's your outlook for the commercial real estate sector in the next 6 months? Tweet me (<a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a>) or email me (prosen@insider.com) to let me know.In other news:<a href="https://www.businessinsider.com/buy-stocks-now-investing-strategy-market-rally-election-midterms-nationwide-2023-4"></a><div type="image" title="NYSE TRADER" height="1500" width="3000" msid="99639495" hostid="261" sizebytes="827178"></div>2. US stock futures fall early Thursday, with corporate earnings still in focus. Later this morning, investors will also be keeping an eye on data on jobless claims and existing home sales. <a href="https://markets.businessinsider.com/premarket?nr_email_referer=1&amp;utm_source=Sailthru&amp;utm_medium=email&amp;utm_content=Opening_bell&amp;utm_campaign=Post%20Blast%20%20:%20The%20stock%20market%20is%20going%20to%20be%20trading%20flat%20as%20long%20as%20risk-free%20assets%20offer%20much%20more%20yield&amp;utm_term=10%20THINGS%20BEFORE%20THE%20OPENING%20BELL%20SEND%20LIST">Here are the latest market moves</a>.3. On the docket: American Express, Fifth Third, and KeyCorp, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting</a>.4. The rest of 2023 is the "best period" for stocks in a 12-month span. Nationwide's Mark Hackett said stocks could be fairly calm moving forward, creating an opportunity ahead of next year's elections. <a href="https://www.businessinsider.com/buy-stocks-now-investing-strategy-market-rally-election-midterms-nationwide-2023-4">He recommended what to buy while the good times roll</a>.5. Germany is looking to cut its reliance on China with a new $2.2 billion commodities fund. Since Russia invaded Ukraine, European Union nations have looked to ramp up domestic production and refining for raw materials. <a href="https://markets.businessinsider.com/news/commodities/germany-china-trade-commodities-fund-metals-market-europe-russia-war-2023-4">Here's what to know</a>.6. Wall Street has high hopes for Netflix. The streaming giant is preparing to crack down on password sharing in the US — <a href="https://markets.businessinsider.com/news/stocks/netflix-password-sharing-crackdown-imminent-wall-street-opportunity-stock-market-2023-4">and Bank of America anticipates that to drive big upside for revenue and subscriber growth</a>.7. US foreclosure filings have increased for 23 consecutive months. In the first quarter, they are up 22% compared to a year ago, and <a href="https://markets.businessinsider.com/news/stocks/home-foreclosure-filings-default-housing-market-crash-repossession-pandemic-moratorium-2023-4">repossessions just hit their highest level in three years.</a>8. This real estate investor commands a 311-unit portfolio. She explained a recession-proof strategy that she's using to all but guarantee she receives market-value rent payments. <a href="https://www.businessinsider.com/real-estate-investing-strategy-recession-proof-cash-flow-section-8-2023-4">Get the full details.</a>9. Meet the Fidelity fund manager who's beaten 93% of competition in the last five years. He shared how he consistently delivers upside while avoiding painful sell-offs — <a href="https://www.businessinsider.com/investing-how-to-cheap-stocks-bonds-growth-market-strategy-fidelity-2023-4">and broke down how he finds "mispriced growth" stocks hiding in the market</a>.<a href="https://markets.businessinsider.com/news/stocks/tesla-stock-elon-musk-price-cuts-market-news-model-y-2023-4"></a><div type="image" title="Tesla stock price on April 20, 2023" height="1034" width="1124" msid="99639496" hostid="261" sizebytes="33368"></div>10. Tesla stock slides 8% in premarket trading as Elon Musk's price cuts eat into quarterly profits. The EV maker met analysts' first-quarter revenue targets, but reported slimmer profit margins. <a href="https://markets.businessinsider.com/news/stocks/tesla-stock-elon-musk-price-cuts-market-news-model-y-2023-4">Here's the latest</a>. Curated by Phil Rosen in New York. Feedback or tips? Tweet <a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a> or email <a href="mailto:prosen@insider.com" target="_blank" rel="noopener">prosen@insider.com</a>.Edited by Max Adams (<a href="https://twitter.com/maxradams?lang=en" target="_blank" rel="noopener">@maxradams</a>) in New York and Hallam Bullock (<a href="https://twitter.com/hallam_bullock" target="_blank" rel="noopener">@hallam_bullock</a>) in London.

Wall Street warns the banking turmoil is coming for the commercial real estate sector

The realty sector is just emerging from a painful slowdown, and is looking for any signs of light at the end of the tunnel. This fact makes <keyword id="6360189" type="COMPANY" weightage="100" keywordseo="Union-Budget">Union Budget</keyword> 2016 all the more crucial for the sector. Financial protection from project delays to introduction of <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword> to the <keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword> Bill, this budget expects these and many more. 

	One of the major hurdles that are holding back the growth of the sector is delay in construction which increases the costs too. On purchase into an under-construction property, buyers can only claim tax benefits of Rs. 2 lakh after possession if construction is completed within three years. The benefits reduce to Rs. 30,000 if the builder delays construction beyond this. In this mess they end up paying higher interest. First-time home buyers purchasing properties for self-use additionally pay rent.
 “Instead of allowing home buyers tax benefits post-possession, the Union Budget should make a provision that allows these from the time they start paying interest on housing loans. This will ease their monetary burden considerably and increase the velocity of <keyword id="6354730" type="UNKNOWN" weightage="100" keywordseo="Home-loan">home loan</keyword> disbursements. Similarly, if an under-construction property is purchased from capital gains, its construction must be completed within three years of its sale to avail exemption. There can be delays by developer in such cases too. These deductions should be brought at par and the construction timeline should be extended from the current three years to five years,” said Anuj Puri, Chairman &amp; Country Head, JLL India in his blog. 

	Tax deduction limits is another major issue which needs to be addressed before it’s too late. The government should increase the tax deduction limit for housing loans, especially for buyers in metropolitan cities. The current limit of Rs 2 lakh is insignificant given the ticket sizes in cities like Mumbai, where most houses are priced at Rs 1 crore and above. 
 “Also, tax concessions on house <keyword id="35450" type="COMPANY" weightage="100" keywordseo="insurance">insurance</keyword> premiums could be introduced to encourage end users to insure their homes. Similarly, the tax exemption limit should be increased by about Rs 1 lakh and be auto-set to match inflationary trends in a financial year,” added Puri. Green is the solution for a sustainable future. But unfortunately most home buyers in India are averse to paying an extra premium for such projects. The Budget should increase the demand too by providing clear and convincing benefits to buyers of green <keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate">real estate</keyword> in the country. 

	“Although the previous Budget prioritised affordable housing, the upcoming Budget should allocate an amount specifically for building infrastructure and improving connectivity in the peripheral areas of cities, especially the metros. Without this, it will be difficult to provide affordable housing in the cities. Developers entering this segment should be allowed cheaper financing options, thereby also providing a shot in the arm for government’s ‘Housing for All by 2022’ target,” he stated. 
 The next big thing in this year’s budget would be the GST Bill. The <keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> should announce a specific date for the implementation of GST. “This major reform will give the industry a very clear <keyword id="6383566" type="PERSON" weightage="100" keywordseo="Taxation">taxation</keyword> structure and induce a major change for the logistics architecture, since logistics will be driven by cost and not by a regulatory regime,” Puri said. 
	 
	Transparency and single window clearance is the call of the moment.
 

	“We are pinning a lot of hopes on the upcoming budget. Getting infrastructure has been long pending demand of real estate sector and this time too we expect the sector to be given infrastructure status so that developers can avail finances at cheaper rates from financial institutions. Also, we are eagerly waiting for single window clearance system so that approvals are given in a pre-defined timelines, furthermore bringing transparency in the overall working system,” said Manoj Gaur, President, CREDAI NCR and MD, Gaursons India told to The Property Times.
 

	Also, one should not forget the much awaited Real Estate Regulatory Bill. Maybe this budget season will see the light of it.

	 
	(Image credits: indiatimes)

Here’s why Budget 2016 is crucial for the real estate sector

<keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate">Real Estate</keyword> sector has been stagnant and unregulated for years now. Rising prices of property, delayed construction, no clarity on Foreign Direct Investment and REITS, ghost buyers are some of problems crippling the growth of the sector. But with the various ambitious projects announced by the new Modi Government there’s a silver lining. As per recent government data, economic growth reached 7.4% in the second quarter of the current financial year, riding on a spike in manufacturing and a pickup in investment. 

	Where it stands?
 Globally positioning India as an investment destination and improving India’s diplomatic and trade relation, Narendra Modi’s foreign stints have helped India attract more <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>. From the nations he visited during the financial year 2014-15, India received FDI of USD 19.78 billion. Moreover, FDI in India increased by 27% in 2014-15 to USD 30.93 billion, said Anuj Puri, Chairman and country head at JLL India in his blog. But a recent <keyword id="6355001" type="CITY" weightage="100" keywordseo="FICCI">FICCI</keyword> survey of the year 2015 (Impact of FDI reforms in the Indian real estate sector) shows how disoriented the sector still is. Though there has been overall growth in FDI in the sector, FDI in construction development sector has declined over the past few years. The following table shows that. 

	
 

	Overall sentiment happy
 Still revival hopes are high! The real impact of latest FDI liberalisation measures on foreign <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword> in Indian real estate will be reflected over a period of time, the industry feels, as per the survey. 

	1. Industry is happy and satisfied with current FDI reforms in construction development sector 
 

	Majority are happy with the recent steps of the Central Government and are satisfied with the policy development. 
 

	2. Increased confidence and optimism in industry towards future flow of FDI in real estate 
 Industry has shown high level of confidence and optimism towards future flow of <keyword id="136566" type="UNKNOWN" weightage="100" keywordseo="foreign-capital">foreign capital</keyword> into realty sector. They feel that FDI reform measures will certainly increase flow of FDI into realty sector in coming months. 

	3. Commercial &amp; Retail and Residential real estate will gain significantly from the liberalisation of FDI in the sector
 

	4. 100% FDI under automatic route in completed projects
 

	100% FDI under automatic route in completed projects for operation and management of townships, malls/shopping complexes and business centres is a significant step taken by the Government, the industry feels.
 

	What more should be done in the upcoming <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">budget 2016</keyword>?
 

	1. Quick implementation of the Real Estate Regulatory Bill (RERA) to enable the <keyword id="46631" type="UNKNOWN" weightage="100" keywordseo="Realty-market">realty market</keyword> to attract FDI 

	2. Government of India should bring more clarity over the entry and exit norms and processes to be followed by investors. 
 

	3. Both Centre and State must work together to ensure removal of bottlenecks for faster implementation of reform measures for foreign investments in real estate. 
 

	4. Government of India could also consider a reduced lock-in-period applicable for FDI investments from 3 years currently to 1-2 years to further enhance investor interests. 
 

	The real estate industry is maturing. There is a wedge between demand and supply of housing. However, with increased market transparency, this demand/supply mismatch can offer immense opportunities for developers and investors alike. But a well regulated and consolidated industry is not a near future dream. 
	 
	(Image credits: FICCI, indiatimes)

Budget 2016: Impact of FDI in real estate sector and future expectations

On the back of the recent policy initiatives by the government to bring in more transparency, India’s <keyword id="6543013" type="UNKNOWN" weightage="100" keywordseo="real-estate-sector">Real estate sector</keyword> is hoping for some key reforms to be passed in the upcoming <keyword id="6360189" type="COMPANY" weightage="100" keywordseo="Union-Budget">Union Budget</keyword>, which will help sustain the positive momentum. 
 
 One of the key initiatives for the residential market is the Prime Minister's campaign of Housing for All by 2022. Incentives directly impacting this will provide a boost to the affordable housing segment and go a long way in fulfilling this goal. This includes exemption of service tax under GST for affordable housing, exemption of stamp duty for homes bought below a ticket size, increased funding to the National Housing Bank (NHB) for cheaper mortgages, standardized costs of building materials, faster approval processes, and a targeted fund allocation for low cost housing projects. Moreover, to urge more private builders to enter the affordable housing section, the Government should consider offering land and building materials at subsidized rates to these developers. 
 
Another key ask of the industry from the upcoming budget is for certain tax benefits to be announced. This includes allowing investors to exit/sell following a period of two years with a lower tax rate, tax breaks for NRI’s and tax reduction to the consumers from the date of booking of the property and not from the date of ownership, reviving demand in the market. Rationalizing of stamp obligations for Union Territories and improvement of property expense evaluation procedures for individual states could also possibly increase transactions. The segment additionally seeks the removal of the Sunset clause for Special Economic Zones (SEZ's) as withdrawal of any tax incentives from them directly impact exports and job creation. These benefits would go a long way in further encouraging transparency in the sector and boosting consumer and investor confidence. 
 
Much is hoped for from the budget which will be presented on 1st February, 2017. India’s position as a bright spot bright spot in the global economic environment coupled with a rising maturity among consumers and investors is working towards bringing back the much needed positive sentiment in the market. Amid indications that the Government will continue with its ambitious reform agenda in 2017, the budget will be an important tool to soften the rough edges around these landmark decisions. 
 
(This post is authored by Anshuman Magazine, Chairman, India and South East Asia, <keyword id="6376943" type="COMPANY" weightage="100" keywordseo="CBRE">CBRE</keyword>)

What India's real estate sector is expecting from Arun Jaitley's Budget 2017

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Carlos BarriaLabourers work at an upside-down house under construction at Fengjing Ancient Town, Jinshan District, south of Shanghai, March 17, 2014</div></div></div>If you can tear your eyes away from China's volatile stock market, you may want to focus on the country's real estate sector.It's about to enter <a href="https://live.barcap.com/PRC/servlets/dv.search?contentPubID=FC2160942&amp;bcllink=decode">"a continued, multi-year slowdown of very significant proportions,"</a> according to a note from Barclays.The likelihood of an imminent collapse is low, says Barclays, but "the slope down might be a little steeper than many investors expect."Here are the main points:<ul><li>Supply is massively outstripping demand. China's housing inventory problem is worse now than in 2012 and 2014. The big 10 cities have around 14 months of spare inventory at the moment.</li><li>The share of residential real estate investment in GDP (10.4%) is higher in China than any other economy before a major real estate collapse, apart from Spain in 2006 (12.5%). The US was at 6.5% before the subprime collapse.</li><li>Around 40-45% of China's total debt is tied up in real estate - that's as much as $9.5 trillion (£6.1 trillion), according to the note.</li></ul>And here's the scary chart showing inventory peaking in March:<div class="KonaFilter image-container display-table"><div><div class="image on-image">Barclays</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-roll-shirtsleeves-2015-7">You've been rolling your shirtsleeves wrong your entire life</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="00aWJtbTpGLZzI--HC1ROjDOsVJUGKFP" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "real estate sector" and got 9 results

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