Today, on the eve of budget, I would like to mention a few of my expectations from the 2008 budget

1. Low cost housing

2. The govt to initiate mechanisms for fund raising for potential real estate projects in India

3. Introduction of REITs

4. A decrease the threshold of FDI below 50,000 sq metres

I hereby invite all members to discuss their expectations

Pankaj

As a user, I feel my basic expectations are that owning a house for a common man is becoming increasingly difficult so definately, some measures on more affordable housing and even lower interest rates to help generate interest of the masses to invest into Real Estate.

Hi Guys

My expectation from the budget, ofcourse other than the ones already shared here is that the government puts aside some money for "education initiatives" within the Real Estate Industry specially for Agents and work towards creating a system of accreditation, hence seperating the worthy from the unworthy.

I am sorry if that sounded rude but I would think this industry, if needs to survive with the sort of competition it faces, will need to get more organised and for the right systems in place, at the base level, the core understanding of the business and its methodologies will hel.

Sahil

Great. I think just at this last moment, lets all summarize what we expect. Tomorrow anyway, we will know what we actually get and how much is a gap, but no harm in brainstorming

According to me,

* Housing Loans should be encouraged by giving more incentives

* Stamp duty on Real Estate Stansactions should be reduced

* I completely agree with sahil on the "Education Initiatives". With growing number of foreign / NRI population  entering the Indian Market, this is the need of the hour

* Definately REITs will be the next big thing

* More incentives should be given to infrastructure companies, hence encoraging infrastructural growth, which is the pillar for all economic growth in India

I guess it will be interesting to know what the others have to say

Miinal

I think the govenment should simply  "Implement" initiatives already taken. The government announces projects & programs to benefit the industry, but guess they get too busy in actually implementing the same.

LAND is the basic raw material for the construction business. 

I believe that the Government should take steps to "release" unlocked FSI, in prime areas of the metros. Afterall the Metro Cities, need vertical expansion. 

Improved infrastructure is indeed the need of the hour. We are all talking about moving to and exploring Tier 11, 111...... V Cities. As we develop more and more roads, more and more land will be accessible to for development .

Great Expectations

1. Reduction of service tax along with the modification of entire income tax structure for real estate industry.

2. The industry anticipates the introduction of sectoral concepts such as rental housing, and real estate investment trusts (REITs) in order to allow housing more easy and affordable for common man along with raising more funds.

3. Conducive Policy framework for REITs and REMFs and Income tax benefits on the lines for mutual funds

4. The Confederation of Real Estate Developers’ Association of India (CREDAI), has demanded from government to reconsider various sections like 80-IB(10) of the Income Tax Act. They have also asked the government to step down various levels of taxation at Centre and State governments.

5. In order to encourage foreign investors and developers to invest in Indian real estate markets, they are stressing on to decrease the threshold of FDI below 50,000 sq metres.

6. The real estate industry also wants government to start up certain fund- raising systems for the industry.

7. Removal of restriction put up on borrowing programmes such as ECB as it is still not clear if realty firms can tap GDR/ ADR market.

8. Reduction of certain duties of core building materials

9. Removal of the 12.36% service tax levied on commercial rentals in the last year's budget.

10. Under section 24 of the Income Tax Act, the exemption of the interest alone on the home loan should go up from the present Rs 1.5 lakh to at least Rs 3 lakh.

11. Rollback of the depreciation rate for hotel buildings to 20%, reduced to 10% in 2003.

12. Hotel industry to be treated at par with other infrastructure sectors and to be granted full tax benefits under section 80-IA of the Income Tax Act.

I think everyone here has listed down all one could expect. But anyway, now that the guess work is over, lets see and discuss the thoughts after the budget is being presented.

Well, low cost housing is one area I can see almost everyone wants to be addressed.

Abhi

Expect to be surprised...........except to be sur - priced !!

Now that most expectations have been blogged....

i wish PPP - public private partnership should be a thrust area wherein subsidised low-cost housing can be a boon - along with neighborhood infrastructure committed as part of the developments.

i also wish State Authorities sanctioning project plans should become quicker and efficient and ...prayfully.........less costly  !

i further wish Transparency in information and solutions on real estate transactions / lower land prices  / land records clarity / low statutory expenses etc 

its just a wish list as you can see....and i have not budgeted for the above at all...!!!