The Reasons Why Realty Sector Needs Big Thrust

Finance Minister Nirmala Sitharaman is expected to keep the real estate sector in focus in the upcoming budget as the sector is the biggest direct and indirect job creator, HDFC Vice-Chairman Keki Mistry told CNBC TV-18. A boost in the realty sector may improve sentiment by ensuring completion of struck projects, Keki Mistry also said. Adding, he said that the affordable segment is largely doing good. However, the problem is with the high-end property when the rates climb above a certain level where people get reluctant to purchase properties, Keki Mistry added. It’s a part of the realty market where a lot of stuck projects are seen, he added. Hyderabad, Gurugram, and Pune are a few cities that are doing well in the commercial segment, he added Keki Mistry also said that the interest rates may come down in the coming days but this would not be of much significance as the economy is gradually seeing a recovery.

The realty sector, which is currently seeing a downturn, contributes 8 per cent to the country’s GDP. Among the key measures expected to revive the sector include changes in Insolvency and Bankruptcy Code (IBC) and other direct measures to revive the sector, CREDAI said in a statement.

Finance Minister Nirmala Sitharaman is expected to present the budget 2020 on February 1. Even as the government has already announced a slew of reforms, it’s expected to announce a few more so as to boost the economy. The GDP grew at merely 4.5 per cent in the last quarter on account of both global and domestic factors.

(Source: Financial Express)