From liquidity to stress fund: Real estate, homebuyers' Budget expectations
Experts say the liquidity crisis is a major factor preventing completion of over 560,000 stalled units across top seven cities
Budget 2019: The real estate sector is looking to the FY20 Union Budget, which will be announced on July 5, to help it recover from its liquidity woes. Meanwhile, homebuyers are also hoping for announcements that would ease their hardships.
In 2017, real estate contributed about 6-7 per cent to India's gross domestic product (GDP). Further, the sector is expected to contribute about 13 per cent to the country's GDP by 2025 and is seen becoming the third largest globally at around $1 trillion by 2030, according to a 2018 KPMG report. It was worth $120 billion in 2017. Budget announcements that give a boost to the real estate sector could provide a positive push to the slowing economy, as well as create more jobs.
Solving the liquidity crisis
The real estate sector is hopeful the government will resolve the liquidity crisis it is facing. Bhutani Group CEO Ashish Bhutani says, "A vital reduction in interest rates will spur a drastic improvement in the existing liquidity crisis...read more
In 2017, real estate contributed about 6-7 per cent to India's gross domestic product (GDP). Further, the sector is expected to contribute about 13 per cent to the country's GDP by 2025 and is seen becoming the third largest globally at around $1 trillion by 2030, according to a 2018 KPMG report. It was worth $120 billion in 2017. Budget announcements that give a boost to the real estate sector could provide a positive push to the slowing economy, as well as create more jobs.
Solving the liquidity crisis
The real estate sector is hopeful the government will resolve the liquidity crisis it is facing. Bhutani Group CEO Ashish Bhutani says, "A vital reduction in interest rates will spur a drastic improvement in the existing liquidity crisis...read more
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