Norms of usage of Input Tax Credit (ITC) on properties under-construction were streamlined in the last Union budget, however, they leave much to be desired. A complete restoration of ITC could not only take away the financial burden of developers, it could also benefit those buying a home, and be a win-win for both, as sales shoot up. Another area of focus in Budget 2020 could be introducing further reforms in Real Estate Investment Trust (REITs), that has already redefined the sector by increasing institutional funding and opening up the cash market. This could lead to developments in infrastructure to boost investor sentiment and channel more foreign investment in the sector going further.
The real estate sector is looking forward to the upcoming budget with a lot of hope and anticipation. Whether it is the implementation of land reforms, reducing land acquisition cost or more liquidity to non-banking financial companies(NBFCs), these are just a few expectations that those in the sector have from the government. It remains to be seen what measures are taken to positively impact the real estate sector that can ease the troubles being faced by property developers and home buyers in the near future.