real estate news – Page 22

With union budget on the limit of being announced, the real estate sector has come up with a host of views and demands. 3 key expectations of the realty market, from budget 2017.

1) Clarity on REITs: Help the guidelines for the Real Estate Investment Trusts (REITs), to get the easy funding and ensure timely possession of the project for the realty sector. Tax clarity certainly helps investors and buyers, by hassle free transactions. One of the main reason for lack of funds, so delay in completion of projects.

2) Tax benefits for Home Buyers: It is major boost for realty sector. A deduction in income tax rates and stump duty will also be great measures. Another boost on tax benefits NRIs who invest in Indian properties. The central government can also reduce the stamp duty in the states/union territories where they are in power. Such a move could encourage other states to follow suit.

3) GST Law: Real Estate Sector is fervently awaiting clarity on the slabs slotted and construction market, in the Goods and Services Tax (GST) structure. Taxes should be reduced, especially for the affordable housing segment. It would be beneficial, if home buyers can come under the lowest possible slab of the GST, thereby, enabling greater affordability for prospective home buyers.

Tech companies absorbed almost 60% of the fresh office lease in Noida. The office-absorption report by the real estate researcher further stated that a total of 7, 06,063 square metres of office space was absorbed in Noida, Gurgaon and Delhi in 2016.

Noida city has alone soaked up 36% or 2, 51,770 sqm of the office space. Gurgaon, leading the show, absorbed 51% of the office lease while Delhi recorded only 13% space absorption.

“In Noida, the technology sector, with 60% share, remained the key driving force in office space rentals. In Gurgaon, though the tech firms absorbed the maximum 32% of office space, the sector’s volume share in this regard reduced significantly from last year’s 64%,”. About 2.8 million sq ft (or 2, 60,220 sqm) of new space will be added to the total office stock in NCR in 2017.

The demand for new office space will be met by a slew of commercial constructions nearing completion in Noida and Greater Noida in 2017. However, as compared to tech-driven institutional rentals, commercial and industrial sectors have seen a plunge in rental values by 5%, the research report revealed.

Property owners have tried to retain existing occupiers with several projects nearing completion, promising high supply over the next three quarters.