Realtors unhappy with interim budget

Realty developers today expressed disappointment that interim budget did not provide any relief to the sector but hoped that steps to push growth in other industries such as automobile would boost housing demand.

"Nothing for the real estate sector. But the message for RBI is right. If other industry moves and economy grows, it will boost housing demand," Confederation of Real Estate Developers' Association of India (CREDAI) Chairman Lalit Kumar Jain said.

He expected that RBI in its next policy review would cut the interest rates.

CREDAI NCR President Anil Sharma said: "The interim budget seems to have overlooked the suggestions forwarded by the real estate developers ... The budget was silent on the issues presently being faced by the real estate sector".

Real estate companies are facing demand slowdown in last few years because of high interest rate and low economic growth.

Global property consultant Cushman & Wakefield Executive Managing Director (South Asia) Sanjay Dutt said: "The interim budget 2014 was a disappointment for the real estate sector. It did not take any measure to spur depressed housing sales and ease the financial woes and liquidity crunch of the long suffering sector".

DTZ India Chief Executive Anshul Jain rued that interim budget did not have any specific measures specifically for the real estate sector.

"Overall, the interim budget presented is expected to prevent any large outflow of dollars out of the country and also help in improving the business confidence levels," he added.

Jones Lang LaSalle India Chairman and Country Head Anuj Puri said the foucs of the interim budget was on controlling fiscal deficit and nothing was expected for the realty sector.

"The issues pertaining to real estate are deeper and more inherent than those pertaining to consumer durables or the automobile industry. Resolving these issues involves fiscal adjustments to key real estate-linked policies and may even require constitutional amendments.

"It was therefore self-evident that the current Vote on Account would not hold anything of real consequence in store for the real estate sector," Puri said.

CBRE South Asia CMD Anshuman Magazine said: "As a Vote on Account, the Finance Minister made all the right pushes for infrastructure, manufacturing, and housing in the Interim Budget"

"Since the current government presenting the budget will be in house for just about a month-and-a-half, the Finance Minister has, in essence, set the framework for the next government's fiscal plan," Magazine added.