MUMBAI, February 1, 2018 /PRNewswire/ --
The union budget announcement today did not have any direct impact on the real estate sector. No changes in Income Tax sops or other direct measures that influence the sector. The demand and supply dynamics of real estate sector get no further intervention.
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The sector which has been reeling for a while was expecting some big ticket announcements to revive it. This was from the perspective that real estate greatly contributes to the three E's - Economy (by contributing 7.7% to GVA), Employment (15 million job creations over 5 years) and contribution to Exchequer. The functional reforms of RERA, Benami Properties (Prevention) Act, Bankruptcy and Insolvency have created a more transparent and accountable sector. The expectations to receive from direct benefits from the budget were high.
The real estate sector's long-standing demand of getting an 'industry' status has, once again, not found mention. Further, there were no concessions for ECB for real estate. The sector expected to see some measures to infuse demand with relaxations in key tax rates like 80C, 80CC and 24B which have also not been addressed. Aspects like single-window clearances, uniform stamp duty or reduction in GST rates on real estate were not mentioned either. Like the GST, single window clearance and stamp-duty could also been brought into a centre-state ambit to be implemented with states towing the line with incentives and benefits upon implementation. We understand that states' will be consulted as part of centre - state dialogue to come to a consensus.
We see some strengthening of the affordable housing sector in the form creation of Affordable Housing Fund under the National Housing Board. This will allow better access to capital for related developments in urban and semi - urban areas. Announcements in allocation in infrastructure and road and highway developments of over 9,000 kilometres, Airport development to increase capacity by 5 times as well as 600 railway station development will create opportunities for developments around these locations. Further, government continues to focus on the 'Bharatmala' to develop 60,000 kilometres further allows for development of new locations.
Alternatives have seen credible mention in the budget with Healthcare and Education being direct beneficiaries. While Senior living, by virtue of improvement in saving capacities of senior and super senior citizen, may also get a boost.
The government continues to stress on transparency by making multiple provisions towards the same with mentions of block chain technology for digital economy, further integration of Jan Dhan to mainstream economy, facilitating raising of bonds and 142 cities receiving investment rating.
The government has focused on creating long term programmes for inclusive growth. They have clearly spelt the motivation of this year's budget as 'Ease of Living'. This budget, seen in the light of yearlong announcements, is only a continuation in the process of reforming the economy.
- Ramesh Nair, CEO & Country Head, JLL India
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit http://www.jll.com.
JLL has over 50 years of experience in Asia-Pacific, with 36,900 employees operating in 96 offices in 16 countries across the region. The firm won the 'World's Best' and 'Best in Asia-Pacific' International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics. http://www.ap.jll.com.
Media Contact:
Piyali Dasgupta
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Associate Director, PR & Media Relations
JLL India
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