Union Budget has disappointed real estate developers by not granting them industry status, a long-pending demand. With the sector regulated by multiple agencies leading to a complex regulatory environment, developers are facing challenges like multiple approvals, complex land acquisition, and strict tax regimes.
Despite the Real Estate (Regulation and Development) Act, 2016 aiming to bring transparency and accountability, its effectiveness varies across states. Industry players stress the need for industry status to streamline approvals and simplify bureaucratic formalities.
Industry status would offer benefits like tax breaks, subsidies, and financial incentives, making funding more accessible and affordable. This move would also lead to tailored policies, priority sector lending, and lower interest rates, ultimately formalizing the sector and bolstering creditworthiness.
While disappointment looms over the government’s silence on industry status, experts speculate that complex regulations may be hindering its implementation. Developers remain hopeful for a streamlined process and government support in the future.
Published 30 July 2024, 22:35 IST