Real estate developers disappointed with interim budget 2014

Real estate developers on Monday 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 the RBI would cut the interest rates in its next policy review.

"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," CREDAI NCR president Anil Sharma said.

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

"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," said Sanjay Dutt, executive managing director (South Asia) of Cushman & Wakefield, a global property consultant.

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," he said.

"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."

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," Mr Magazine added.