The much awaited Budget Session 2016-17 is finally underway with lot of hopes from the Government to bring in the much needed relief for the country. The tricky trade-off for the Finance Ministry to balance the funds flow will be tested to the core; this time especially due to mammoth plans being already laid. Real estate, which is dependent on over 30 allied industries and sectors, is hopeful for a silver lining. But with the clouds of political disturbances in the country looming, scope of any direct benefit to this sector are becoming null. Passage of Land Bill in this session is out now, with fingers crossed for GST and Real estate bill. Although, it is the demand revival and clearing of unsold inventory what this sector is craving for, the factor which might become prominent if our Honourable Finance Minister Mr. Arun Jaitley announces tax benefits, incentives, allowances, 7th pay commission, OROP, medical allowances, education benefits, benefits on saving and investments, etc.

“Huge commitments with respect to economic growth and infra revamp have been announced in the last couple of years, the fuel to which can be provided only when key reforms in the budget are announced. This sector is hopeful for direct benefits in way of Real estate bill and GST, but providing income tax benefits, allowances and better slabs for savings and investments, will somewhere add towards indirect benefits for this sector. End of the day, it is the purchasing power of a customer that justifies a real estate purchase and if these indirect benefits are made available, then demand is sure to revive in the long run”, states Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group.

Tax structure revision a must

At present, the first income tax slab starts from Rs. 2,50,001 and tax savings are allowed to a maximum of Rs. 1,50,000. A person is then safe from tax liability till the time they are earning Rs. 4,00,000 annually. “If the Budget announces revision of tax structure by increasing the limit by another Rs. 50,000 – Rs. 1,00,000, there will be an additional disposable income available for the earner. Similarly, a Rs. 50,000 increase on the savings slab will allow an earner to foray into different ways of investments. This implies that a person will become safe from the tax liability till Rs. 5 – Rs. 5.50 lakh. A major segment of our population today is youth, but is without a home of their own. Announcements like these will allow them to expand their investment options towards higher budgets, thus allowing the inclusion of real estate as well”, explains Mr. Sushant Mutterja, CMD, Cosmic Group. Adding more weight into the topic and putting light on another aspect, Mr. Ankit Aggarwal, CMD, Devika Group elucidates “There is another angle at looking towards how revision of tax structure may help this sector to grow. Youth in India stands at over 50 percent today with most of them are being working singles, putting up on rented accommodations. If tax structure gets lenient in this Budget, there will be an overall shift towards better accommodation for renting. A 1 BHK tenant might shift to a 2 BHK and a person who is unwilling to stay on rent, might afford then. And, in best cases, many might even then be able to buy a property of their own as well. Thus, there will be a growth in rental housing demand as well as for end use and investment.”

Incentives from other sources

Understanding from a common man’s perspective, a decent Budget should be such that should not only bring relief to the citizens but at the same time, maintain a decent government surplus for the future as well. “What matters the most to any citizen is how much they are able to save, so that it can be further used towards other investments. Announcing incentives towards health and education will allow people to save money from this end and use them elsewhere. Enhancement of purchasing power is what ideally should be government’s motive in this Budget session so that people are able to save more and explore other bigger possibilities like real estate, etc. This will allow a better flow of demand in the sector plus regulate the flow of funds”, shares Mr. Vikas Sahani, CMD, Property Guru. Standing in sync and adding further, Mr. Vikas Khurana, Co-Founder, HomzCart avers, “All eyes are set on the Budget this year where mega announcements are awaited. A lot has been said and now is left to be done, and this Budget holds the key towards action. Indirect contributions for the real estate sector may get announced by way of seventh pay commission, OROP and other incentives towards lowering tax percentages and removal of multiple taxes. This is of much significance for the realty sector as demand will get generated only when customers are standing ready with easily available supply.”

Budget Session 2016-17 is planned to be held in two parts, first from 23rd February to 20th March then after a month break; from 20th April to 8th May. Thus, there is a long road ahead with ample to time to execute key reforms which should become a benchmark for the future years. Commenting upon how much importance this particular Budget Session carry for future Mr. Ashok Gupta, CMD, Ajnara India Ltd. concludes “The parliament session on the first day has begun on a low with hardly a few hours of activity. For the real estate sector, Real estate bill, GST and granting of Industry status will hold the key for future progress and demand dynamics. Announcements in the form of flexibility towards tax structure and savings, education, affordable housing, health and others will allow people to save money from one side and utilise it on other fronts. Real estate sector might reap the benefits directly or indirectly out of this Budget Session where the main motive of the government should be focused upon income savings and then influence people to invest on other mediums, to keep the momentum going.”




Noida: After a series of quality constructions and on-time deliveries, NCR realty major Gulshan Homz has announced the launch of its much awaited residential project ‘Gulshan Botnia’, which is to be developed at Sector 144, Noida Expressway. After an enthralling response received for their previous two developments on the Expressway, namely ‘Gulshan Vivante’ and ‘Gulshan Ikebana’, this is their third in line to be developed in the region.

The project will offer 2/3 BHK apartments with five unit plans starting from 1,025 sq. ft., 1,160 sq. ft., 1,355 sq. ft., 1,370 sq. ft. and 1,475 sq. ft. The total area of land under development would be 21,494.8 sq. mtrs. or 5.31 acres approx. that will house 12 towers with around 1,000 units in offer, podium + 19 floors in each tower. Gulshan Botnia, which is to be developed at Sector 144, Noida Expressway has been planned very strategically where it will receive the fruits of being well connected to the National Capital, Greater Noida, Faridabad, Ghaziabad, Yamuna Expressway and various other parts of Noida as well. The project is expected to be ready and delivered by March, 2019. The current BSP stands at Rs. 4,250 per sq. ft. approx. or Rs. 43.5 lakh onwards. The project boasts of brilliant locational advantages as well with close proximity to the upcoming metro station and ISBT while facing authority green area. The project features a neoclassical architecture, immaculate landscaping and a central landscaped podium. Along with superior connectivity and locational advantages, the project offers various modern amenities like in-compound OPD, customer care centre, water softner plant, amphitheatre, infinity swimming pool with a large deck, rainwater harvesting, playpen for kids and much more for the future residents to relish.

Feeling proud and jubilant on the launch, Mr. Deepak Kapoor, Director, Gulshan Homz & President CREDAI-Western U.P. said “First of all, I would like to take this opportunity to thank all our stakeholders and associates who have been with us throughout this successful journey. On behalf of the entire Gulshan Homz family, I take this sheer pleasure in presenting Gulshan Botnia. The project has been planned keeping in mind all the important aspects for the residents and thus offering amenities that matter, location which provides access to key places and connectivity with chief NCR regions. Noida Expressway being a region in demand will make this project a great addition for every investors’ and residents’ portfolio. We hope to receive a good response from the public like we have always.”

About Gulshan Homz

While fire, water, wind, earth and sky are the five indispensable aspects of our environment, Gulshan Homz calls quality, faith, professionalism, truthfulness and passion as the five element of its blueprint. Some may term them as are their building blocks, they call them their raison d’être, or to put it simply – their very essence of existence. And it is this foundation laid by their Founder & Managing Director, Mr. Gulshan Nagpal, that Gulshan Homz has stood rock solid for more than 25 years. The foresightedness of Mr. Nagpal has helped the company envision and improvise its skills. No wonder then, today their structures speak for themselves and their future looks bright with a number of premium projects already in the market.



   India being one of the fastest developing and growing economies across the globe is not leaving any stones unturned to carry this feat for the construction sector as well. Back in 2014, the Modi led NDA government stormed into power with its prime motives being economic development along with an enhancement of citizen’s lifestyle, for which several plans were formed. Food, clothing and shelter contribute towards the basic needs of everyone and the government has already begun its work on the fooding and clothing parts through employment generation and stress on education. To make sure that shelter is made available to all, plans like Housing For All, Smart Cities and AMRUT are already underway.

“Modi government’s plans and work on the housing and infrastructure fronts have been extremely commendable. With the kind of major work carried by the government on the infrastructure front in the last 18 months, it will bring about a huge push for this country’s real estate in the upcoming years along with economic development as well. It is to be noted that, not only has the government made announcements, but has also allocated huge chunk of funds for the work planned”, explains Mr. Vikas Bhasin, MD, Saya Group.

Realty sector at present

This sector that has been reeling under the severe pressure of non-performance for the last few years has finally started to make a comeback. Several factors have contributed towards its revival where investors, stakeholders, developers and the government have worked together. This sector has been a true example where the demand is first created and then the product development and supply makes way. This means that the correct understanding and analysis of the demand is crucial towards the betterment of all. This thought process has always been there in this sector, but never correctly implemented. But off late, developers have started to work according to this model which is allowing this sector to make a strong comeback.

Putting light on the same, Mr. Rakesh Yadav, Chairman, Antriksh India avers “Since late 2008 and till 2012, the demand for housing had taken a blow, the effect of which was such that this sector had started to run on losses. But then came the era where developers worked in accordance to the demand of the market, the positive results of which are becoming prominently visible.” Agreeing to the fact and speaking in sync, Mr. Sudeep Agrawal, MD of Shri Group states “Indian real estate market is coming back on track quite nicely, the credit of which chiefly goes to the change of the developer’s approach towards the customers and their demand. At the same time, revolutionizing decisions take up by the government in the form of infra upgradation and easing the ways of doing business through amendments in FDI for real estate along with a major thrust provided by the RBI last year by reducing 125 basis points has been highly motivational for bringing the sentiments on track.”

There is no denying in the fact that the government is working diligently to bring forth our country’s real estate sector and infrastructure on the global map. RERA, Single window clearance, Industry status, GST, etc. are few such terms which were just heard off earlier, but this time the government is seriously looking into making these dreams real, but only lacking opposition support.

Improvement on the cards

Real estate sector was eagerly waiting for the passage of key reforms in the last two Parliament sessions that went absolutely empty due to reckless conduct by the opposition. It is expected that in this Budget Session, the government will take firm actions to make sure that maximum bills get passed which will bring about the much needed cheer for the sector. “There is no doubt that this sector is gaining back the lost momentum and we are expecting this drive to catch up pace soon. Smart cities mission, Housing for all and AMRUT are clear signals of this growth. Not only has the government allocated funds for these initiatives but these are based on PPP model where private sector will play a vital role in shaping up the country’s infrastructure and thus, gradually pulling the investor confidence”, affirms Mr. Vikas Sahani, CMD, Property Guru.

“It is a great sight for the realty sector to witness the comeback of investors with end users showing better signs of interest. Keeping all these factors in mind, the kind of phase that this sector was waiting for has finally arrived. The only thing now left to be seen is when and how the benefit of this reaches till the rightful stakeholders of this sector, who ultimately are the makers and bakers of this sector”, shares Mr. Rahul Chamola, MD, One Leaf Group.

“For an overall development of a region, it is imperative that the basic infrastructure and connectivity with adjoining regions are met; and here, the public and private sectors are jointly contributing. Apart from this, sustainable, affordable and quality development has become the need of the hour where developers are doing their best to meet this demand and provide the right shelter to the customers; fueled with steps taken up by the RBI last year. All eyes are now on the upcoming Budget Session where the passage of RERA, GST, Single window clearance or even Industry Status for realty sector will bring about the much needed impetus for this sector”, concludes Mr. Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz.



      As we have just stepped into the month of the Budget Session 2016-17, which is to commence from 23rd February, 2016; all eyes and ears will be fixed upon our Honourable Finance Minister Mr. Arun Jaitley for what he has in store for the nation’s citizens. Real estate sector in particular is most eagerly waiting for the Budget announcements as it holds the key to this sector’s unprecedented growth. Apart from the regular demands of Industry Status, Single window clearance, RERA, Land Acquisition and GST; this sector is relying heavily upon the announcements of ‘Seventh Pay Commission’ and ‘One Rank, One Pension’, as it is sure to provide a massive push to country’s residential real estate and gradually, commercial segment as well, in the upcoming few years.

“Announcements for OROP and seventh pay commission will act as a fuel to propel the realty demand specially for the housing segment in India. It is to be noted that over 2 crore people account to government service and around 32 lakh people towards OROP. This segment of our population will cater to the demand for second homes, holiday homes and too some effect, affordable housing as well. This news is thus significant from the realty sector’s perspective as well, as it will open the gates for the players to provide this demand with multiple options of providing homes”, shares Mr. Ashok Gupta, CMD, Ajnara India Ltd.

7th Pay to Cloud 7

There exists a direct relation between housing demand and one’s purchasing power. If the Union Budget this year announces the seventh pay commission, there will be an increment in the existing salaries along with distribution of arrears, according to the time served. Once the increased salary effect takes place, the pension, post-retirement will become higher as well. Moreover, the already retired will also receive the benefits of the seventh pay commission to some extent, and this entire scenario will push the housing demand forward. “A huge chunk of the buyer group today comprises of government employees and with their pays expected to go up by as much as 23.55%, we are sure to see a spike in the people ready to invest across the sector. The need is always there because most of them have been using government accommodations as their residences throughout their period of service but once retired, they would be required to vacate the same thereby fuelling the future demand of housing in the sector”, avers Mr. Rupesh Gupta, Director, JM Housing.

Adding further and putting light upon how second home buying option will become prominent post this effect, Mr. Kushagr Ansal, Director, Ansal Housing states “Overall, there are around 2 crore government employees who would directly be receiving the benefits of this proposed pay hike. It can well help estimate the number of families which will be ready with a bulged pocket. This coupled with the positive steps taken up by RBI last year is sure going provide much needed consumer influx for the sector, as their prime motive is end use of property which might even give them an investment option through second property buying because of increased income.”

OROP effect

It is been projected that the potential beneficiaries from OROP is about 26 lakh ex-servicemen and 6 lakh widows, which includes war widows, as well. Therefore, there is a combined total of 32 lakh, of whom about 86 percent are widows, NCOs, JCOs, and other ranks, about 14 percent are officers. Out of the estimated outlay on OROP of Rs. 8400 crore, about Rs. 6200 crore will be on account of widows, NCOs, JCOs, and other ranks, and about Rs. 2200 crore for officers. Speaking on a macro level, we are catering to another set of demand which is 32 lakh in number. “In a sector where the demand for housing is taking a toll, every single potential customer is extremely important. If the upcoming budget gives a go ahead to OROP, we will have a huge pool of potential customers ready to buy or invest. There might then be a rise in demand for affordable homes and second homes or even holiday homes as post retirement or for pensioners, the time after retirement is perfect to live the desires planned during the service days”, says Mr. Sushant Muttreja, CMD, Cosmic Group.

Putting more weight on the same, Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group explains “We are looking at a segment where 32 lakh citizens deserve a wonderful life for the efforts that they had put in order to take our country to another level. Most of the retired or old aged people in India are without a roof due to unaffordability reasons. This causes them to drift towards old age homes, where still there aren’t enough facilities available for them. Thus, if OROP gets through this budget session, a fresh demand will be there for the realty players to cater to, that will open a wide variety of doors. Affordable housing and projects based on themes for old aged people will become available in abundance.”

With the seventh pay commission, purchasing power of the existing government officials will increase and at the same time, it will attract more and more youth towards the public sector. OROP will greatly strengthen the faith of the pensioners towards the government and will also allow private players to cater to a much broader but a niche audience. “If the Seventh Pay Commission and OROP gets a green signal in this Budget Session, we are talking about almost 2.5 crore potential customers. It is just a matter of analysing their demands and providing the correct supply. This coupled with 2 crore housing shortage, answered through Housing For All, and with Smart India Mission already underway, housing sector in India will witness a boom in the upcoming few years, which will gradually make the commercial segment also grow. Thus, this Budget Session will be a make or break event for the real estate sector in particular”, concludes Mr. Vikas Khurana, Co-Founder, HomzCart.



   In a much anticipated and steadied move, the RBI kept rates unchanged today in its first bi-monthly policy review for this calendar year. The key rate (Repo Rate) remains at 6.75 percent, Reverse Repo Rate at 5.75 percent, Cash Reserve Ratio (CRR) at 4 percent and the Marginal Standing Facility (MSF) rate and the Bank Rate at 7.75 per cent. Last year saw the apex bank reduce the key rate by 125 basis points or 1.25 percent allowing a significant room for the banks to reduce lending rates for the buyers.

“The Union Budget 2016 – 17 being around the corner, it was extremely crucial on RBI’s behalf to come out with a no-change review keeping in mind its anxieties on the inflation rate in future. Accordingly, RBI might have to follow a suitable budgetary tightening approach to reduce its impact on the economy”, states Mr. Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz.

“With such heavy reduction in repo rates in the last calendar year, the banks are still to pass on these, thereby giving the RBI reasons to hold back. As the CPI inflation was static post the previous policy review, there were no immediate panic buttons pushed which would have resulted in changed rates from the apex bank”, explains Mr. Rupesh Gupta, Director, JM Housing.

Mr. Vikas Bhasin, MD, Saya Group avers, “The biggest boost was to keep the Bank Rates unchanged. With the financial year closing and banks looking to ascertain steady fund flow in the opening quarter of the next financial year, it was necessary to give them a firm ground to play upon. This might also help in allowing banks a free hand at disbursing loans with reduced risks in the market.”

“With the Federal Reserve rates being unchanged on the past two occasions and FDI holding a steady inflow in the market, hiking the rates now would have adversely affected the economy. Crude oil prices have constantly fallen down or atleast maintained a stabilized rate in the foreign market which is a good catalyst in itself for revival of the nation’s economy”, adds Mr. Rahul Chamola, MD, One Leaf Group.

“With the upcoming budget expected to be all inclusive rather than exclusive, it was necessary for the apex bank to hold on to the current rates. This gives both, the government and the RBI some relaxations in their work. The government will not be under any undue pressure with changed rates before the budget and the RBI can study the annual budget and accordingly come about with changes in the next bi – monthly policy review”, affirms Mr. Sudeep Agrawal, MD, Shri Group.

“For 2016-17, growth is expected to strengthen gradually, notwithstanding significant headwinds so this is a much balanced and expected review decision. Although, the benefit of repo rate reduction in terms of reduced lending rates was not passed in equal amounts to the loan seekers but the sector remains hopeful that the Union Budget for 2016 – 17 will provide additional comfort to financial institutions helping them cut down further on their lending rates”, concludes Mr. Rakesh Yadav, Chairman, Antriksh India.