Smart cities: Proposal to develop 100 of those, to offer sustainable economic development and employment opportunity to a wider section of people, regardless of their level of education, skills or income levels
- Reits: The Securities & Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, notified. Reits will facilitate tapping of cash flow in the Indian economy, and help smaller investors access income-generating real estate assets
- FDI: Relaxation in conditions for foreign direct investment in the construction sector. Some of these relaxed rules include reducing minimum built-up area and capital requirement for the projects receiving FDI
- The Real Estate (Regulation and Development) Bill, 2011: Yet to receive clearance from the Cabinet, the Bill proposes to promote transparency and accountability in the sector. The Cabinet is deliberating on revising the long-delayed Bill and having a regulator for the real estate sector.
Read our full coverage on Union Budget
- Opaque regulatory environment
- Tight leash on funding by banks
- Variation in stamp duty levied by various states
- Lack of clear land titles, absence of title insurance and procedural difficulties in obtaining clear land titles
- Little progress on plan to revive SEZs
According to ‘Emerging Trends in Real Estate Asia Pacific 2015’, jointly published by PwC and Urban Land Institute, there has been a change in sentiment of investors, both domestic and international, after a new took charge at the Centre last year. The growing confidence is likely to create an upturn in demand for Indian real estate.
While there are a lot of expectations on direct tax sops for the real estate sector, at the very least, we expect certain clarification on the taxation regime of Reits, to eliminate hurdles in implementation of the structure and provide parity of taxation regime between various investments on Indian listed platforms. As expressed in the previous Budget, to revive interest in special economic zones, the government could reinstate the minimum alternate tax (MAT) exemption provided to SEZ developers and units. Exemption from levy of dividend distribution tax (DDT) could also be reinstated for SEZ developers. Further, certain measures to make liquidity available to the sector are also expected.