Real Estate Should Survive On Market Economy, Not On Subsidies: FM

Finance Minister Arun Jaitley has warned Real Estate developers to understand the market dynamic and make their strategies as per the market economy, rather than depending on the subsidies for the sector. He said that the real estate sector has huge potential for growth and hoped that the period of slow down would end soon.

In his address at the CREDAI-BANKCON 2015 on Role of Banking and Finance in Real Estate Development, Jaitley said that, undoubtedly sector will be the next big mover as far as the Indian economy is concerned, but industry must survive on market economy and subsidies should not be the essence of survival. Reiterating the commitment of government towards housing for all, he said easier availability of land was crucial to realising the dream of affordable housing.  "It is not cheaper availability of land - it is easier availability. If we complicate procedures too much, then we will be preventing people from acquiring affordable homes” he added.

While emphasizing the need of more townships, sub-urban townships and smart cities to lead the economic development of India, he suggested CREDAI to put its case of proposal of taxation before the newly appointed committee reviewing the Income Tax Act. FM said that the government is committed to fuel economy and it will also positively impact the real estate sector as well. “Already inflation had been brought under control and the Reserve Bank had also reduced interest rates four times this year, and these measures would impact the real estate sector positively. Also recapitalization of public sector banks would give more strength and muscle for the banking sector to lend,” FM added.