Government to contemplate classifying real estate sector as distinct asset class: Puri

* The housing and urban affairs minister advised the real estate builders to offload unsold inventories

* Puri additionally hinted that the government would inspire other states to lessen stamp responsibility for enhancing the housing sales

The central government will recall classifying real estate sector as distinct asset class, housing and urban affairs minister Hardeep Singh Puri said. The goal is to offer the real estate sector a further boost, the minister expressed. “there was a proposal that the real estate needed a unique asset class. we will push this ahead," he stated. Puri was addressing a virtual conference organised through realtors' body NAREDCO and Asia Pacific real estate association (APREA).

To spur economic activity and enhance demand, the minister advised the real estate builders to dump unsold inventories. "I think time has additionally now come to offload a few inventories. don't dangle on to it," he noted.

To help developers clear unsold inventories, the finance ministry lately introduced income tax relief for both the homebuyers and real estate developers. For primary residential real estate sales of as much as ₹2 crore, the differential among circle rate and agreement value increased to 20% from 10% earlier. The circulate was aimed to help

"This 20% will result in greater financial activities. All of you need to step up now. eliminate inventories," Puri added.

On categorization of real estate sector as unique asset class, Anuj Puri, chairman - ANAROCK property specialists stated, "It suggests that housing stays an crucial factor on the government' average schedule. whilst the industry has long been inquiring for industry status, any provisions or amendments which assist in the development and consumption of housing will be welcome."

mentioning the need to classify the real estate area as a unique asset class, Renu Sud Karnard, managing director, HDFC limited said, “We want more reforms which include growing the FSI, assessment of ECLGS – 2 schemes for housing finance organizations to preserve up the momentum."

Rajeev Talwar, country wide chairman NAREDCO entreated the crucial government to recollect FDI flows into the low-priced housing section and anticipated in addition tax reliefs on home loans to provide a lift to housing production.

Puri also hinted that the government might inspire other states to lessen stamp obligation for enhancing the housing sales. Maharashtra and Karnataka governments have reduce stamp obligation on transactions of immovable houses to reinforce income. The initial estimate shows that there was suitable response to the pass, he noted.

Puri said that he would write another letter to chief ministers and provide a "renewed push".

The minister expressed pride about the development of prime Minister Aawas Yojana (PMAY). He also praised the implementation of inexpensive rental Housing Complexes (ARHC) programme. these schemes are being severely implemented and often reviewed at the best stage, he added.

“we've signed MOUs with 27 state governments for inexpensive rental Housing Complexes programme and have obtained over 28 lakhs registrations on the portal that speaks about its extent and need." he further stated.

Rajan Bandelkar, vice chairman, NAREDCO West stated, “With the assist of the government and the financial establishments, the real estate area would soon be able to bridge – up the liquidity deficit and deliver the bankable projects. The overseas funding will boom significantly across asset-classes within the subsequent year."