Realty sector blamed budget 2013 for not implementing any sort of real estate reforms. Industry had expected the budget to implement some reforms to boost the sector.
Now the real estate sector could be divided well into two phases; the first that of hopes and expectations and the second that of despairs and unhappiness. It was true that the realty sector was expecting some sort of reforms to be initiated in the budget 2013.
The budget 2013 was expected to include real estate regulatory bill as a matter of higher importance. Besides the regulatory bill, other reforms like infrastructure status for the housing sector also were not included in the budget.
As against the infrastructure demand for the entire realty sector, finance minister had hinted to provide the infra status to the housing sector alone. He specially mentioned the need of providing infra status to the affordable housing sector. However nothing of such reforms was brought to light in the budget.
Home buyers too expected that their property deals would be clear with the implement of regulatory bill. However nothing happened. The bill was not taken up as an issue of talk.
Moreover the budget has imposed additional charges on the top earners and the purchase of top end housing units would be affected by this.
The sole thing which the budget provided to the housing segment was providing tax deduction up to Rs.1 lakh for the home loans up to Rs.25 lakh. However this would be applicable only for those who take home loans for buying their first home.
The budget also has proposed 1% TDS on all apartments above Rs.50 lakh. This will also have an adverse impact on the sales. The top end housing segment will be more levied with taxes and surcharges.
Considering the reforms in the realty sector, the sector will have to wait longer. Real estate players, however, do not know till when they will have to wait for the reforms to take place in the sector.