The real estate sector was in the news all through the year, with the government announcing several major policy initiatives such as the passage of the Real Estate (Regulation and Development) Act 2016 and the amendment to the Benami Transactions Act. But the most talked about was the demonetisation of Rs 500 and Rs 1000 currency notes used mostly for real estate transactions. With a mandate for speedy implementation of projects and to resolve bottlenecks, major contracts have been awarded to build highways, transmission lines and other infrastructure related projects.
Although the framework to build modern infrastructure has started to come together, many challenges remain. The advancement of policies and initiatives such as the Real Estate (Regulation and Development) Bill will reduce the cost to undertake infrastructure projects and increase the ability to raise capital through private sources. It will be essential to continue to streamline processes, approvals and coordination between various levels of government and departments. •The Benami Transactions (Prohibition) Amendment Act, 2016 lays down stringent rules and penalties associated with dealings related to ‘benami’ transactions. •To promote affordable housing, the finance minister proposed 100% deduction in profits to an undertaking from a housing project for flats of up to 30 sq metres in four metro cities and 60 sq metres in other cities. •To stimulate housing demand from first- time home buyers, the Union Budget 2016-17 also proposed deduction of additional interest of Rs 50,000 per annum for first-time home buyers for loans of up to Rs 35 lakh sanctioned during the next financial year for houses with a value not exceeding Rs 50 lakh. •To help the ailing construction sector, the government has cleared reforms including speedier resolution of disputes and the release of 75% of amounts that are stuck in arbitration. The government will now release 75% of amounts against margin-free guarantee in cases where arbitral awards have been given but have been contested. •Exemption of service tax on construction of affordable houses of up to 60 square metres under any scheme of the Central or state government including public private participation or PPP schemes will propel construction in affordable segment across India and encourage greater collaboration between the public and private sector as well as participation in affordable home construction. Sanali group is one of the most valuable and trusted real estate development companies. It is a pioneering developer of many high profile projects. The sanali group has achieved proven competencies in property, IT parks, shopping malls and retails and hospitality and leisure. Also Read - Role of real estate sector in Indian economy
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