New Delhi, Jan 20 (UNI) With the countdown beginning for the last budget of the NDA government, the real estate sector is expecting that this time the government may focus on the demonetisation-hit sector, which has only just started to recover.

The Indian real estate sector is one of the most important sectors for the economy, contributing as much as 6-7 per cent to the GDP in 2017 and is expected to contribute about 13 per cent by 2025.

The government has been focusing much on real estate sector over the past few years to ensure that the target of housing for all by 2022 -- which is India’s 75th anniversary as an independent country -- is achieved. However, much needs to be done, Supertech Limited Chairman R K Arora said.

He said GST should be reduced to clear the hurdle of multiple taxes and complexities in real estate transactions. This must be removed as is the case for most other industries.

“Another request we have is that the real estate sector be given industry status. The growth of the real estate sector is one that has a ripple effect on many other ancillary industries. The sector was one of the worst hit after demonetisation and has only just started to recover. The change in status make it easier for developers to raise funds at lower rates.

“The cost of capital is a major problem at this time and a reduced cost of capital would impact overall project costs and costs to buyers. We also hope that the Government reduce the GST rate applicable to housing as that would be the ideal boost that is much needed by the industry. "

UNI SW SY 0905