Budget 2014: Hoping for progressive policies on FDI in real estate

By Anuj Puri

MUMBAI: The Narendra Modi-led NDA government has taken charge of the country and its economy, and we are now looking at the possibility of issues that have been plaguing the Indian real estate sector - such as delayed projects, legal quagmire, lack of project funding and transparency shortfall - being proactively addressed.

Very importantly, the new government has also announced a very clear mandate in terms of promoting affordable housing.

The Indian real estate industry is now replete with hope that the new government will be able to re-establish the country as an economic force, increase consumer confidence and unravel the policy paralysis as well as other bottlenecks that are preventing economic growth.

In the upcoming budget, the real estate sector is hoping for the announcement of progressive new policies pertaining to FDI in real estate, because the sector is in serious need of liberalized funding flow.

Global investors are once again enthusiastically eyeing the Indian market for the immense opportunities it offers. There is now a possibility of a huge increase in foreign investment inflows, and the budget is definitely the ideal opportunity for taking serious steps to encourage this.

We once again reiterate our sincere call for the real estate industry to be given preferential industry status on the lines of infrastructure. The sector also looks forward to the budget outlining proactive measures to tackle the serious issue of inflation, as interest rate rationalization is a must so that home sales can pick up again.

Other important calls to take are on faster approvals for affordable housing projects, an upward revision of the cap on priority sector housing loans and the implementation of GST, which will have very favourable implications for real estate in India.

(The Author is Chairman & Country Head, JLL India)