“India is over the days of incremental change and is waiting for a quantum jump,” said Finance Minister Arun Jaitley while presenting the Union Budget 2015-16, his government’s first full economic vision document after it came to power in 2014.
While market analysts and real estate experts were expecting some concrete measures and announcements to bring positive sentiments back into the Indian real estate sector, the government played it safe and announces measures that would indirectly make favours to the industry, but not specifically to the real estate sector.
In the Union Budget 2015-16, the government proposed to rationalise capital gains regime for Real Estate Investment Trusts (REITs) and to permit foreign investments in Alternative Investment Funds (AIFs), without giving clear details about the proposals. Finance Minister Arun Jaitley, while presenting the budget for 2015-16 in the Lok Sabha, has said that his government is committed to make it easier for foreign investors to invest in AIFs and is planning to give away rules related to Foreign Direct Investment and Foreign Portfolio Investors (FPI).
AIFs refer to any privately pooled investment funds from Indian investors (in India or overseas) which do not fall under the jurisdiction of any regulatory agency in India. AIFs are basically operate as real estate funds, private equity funds and hedge funds.
Giving boost to the Infrastructure sector, Finance Minister Arun Jaitley has announced slew of measures that have indirect positive impact on the real estate sector. The announcements include allocation of Rupees 70,000 crore to the Infrastructure sector, construction of 2 crore houses in rural India and 4 crore houses in urban India by 2022, and enactment of ‘Benami Property Transaction Bill’ to curb black money transactions in the real estate sector.
Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group, after studying the budget document presented by the Finance Minister of India, says “while Budget 2015-16 doesn’t bring any fireworks to the Indian realty sector as was expected by experts, announcements like 8-8.5% GDP growth forecast for the next fiscal year, housing for all by 2022 and allotment of Rupees 70,000 crore for Infrastructure development, will keep the market sentiments high towards the Indian Real Estate sector in the coming months.”
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While market analysts and real estate experts were expecting some concrete measures and announcements to bring positive sentiments back into the Indian real estate sector, the government played it safe and announces measures that would indirectly make favours to the industry, but not specifically to the real estate sector.
In the Union Budget 2015-16, the government proposed to rationalise capital gains regime for Real Estate Investment Trusts (REITs) and to permit foreign investments in Alternative Investment Funds (AIFs), without giving clear details about the proposals. Finance Minister Arun Jaitley, while presenting the budget for 2015-16 in the Lok Sabha, has said that his government is committed to make it easier for foreign investors to invest in AIFs and is planning to give away rules related to Foreign Direct Investment and Foreign Portfolio Investors (FPI).
AIFs refer to any privately pooled investment funds from Indian investors (in India or overseas) which do not fall under the jurisdiction of any regulatory agency in India. AIFs are basically operate as real estate funds, private equity funds and hedge funds.
Giving boost to the Infrastructure sector, Finance Minister Arun Jaitley has announced slew of measures that have indirect positive impact on the real estate sector. The announcements include allocation of Rupees 70,000 crore to the Infrastructure sector, construction of 2 crore houses in rural India and 4 crore houses in urban India by 2022, and enactment of ‘Benami Property Transaction Bill’ to curb black money transactions in the real estate sector.
Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group, after studying the budget document presented by the Finance Minister of India, says “while Budget 2015-16 doesn’t bring any fireworks to the Indian realty sector as was expected by experts, announcements like 8-8.5% GDP growth forecast for the next fiscal year, housing for all by 2022 and allotment of Rupees 70,000 crore for Infrastructure development, will keep the market sentiments high towards the Indian Real Estate sector in the coming months.”
Follow Mr. Anil Mithas on Twitter & Facebook