Commercial Office Real Estate
1. The implementation of the revised DTC will have strong implications on SEZs. The industry requires clarity on the issues that may emerge, and how businesses would be promoted in Special Economic Zones.
2. Taking cues from the healthy growth of IT/ITES in Tier I cities and its effect on the growth of employment, the Government should actively roll out an incentive-based IT policy (such as STPI) for Tier 2 and Tier 3 towns as well
Residential Real Estate
1. Last year, a 1% interest rate subsidy was provided for loans towards affordable housing. The scope of this subsidy should be amplified and broadened to include a wider price band of budget housing to benefit home buyers, especially in lower income groups
2. More funds should be allocated to the Rajiv Awas Yojana (RAY) for urban housing targeted at the EWS and the LIG sections
3. Enact provisions for Special Residential Zones (SRZs) to incentivise the growth of housing stock at targeted locations
Retail Real Estate
1. Relax FDI upto 51% into multi-brand retailing. Indian retail will benefit greatly from increased spending in back-end logistics infrastructure and growth of organised retail
1. Increase infrastructure spending in urban areas with a view to unlock the value of neglected and hidden land assets in suburban and peripheral districts’
2. Increase outlay to Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
1. Grant industry status to real estate, since the sector is a major driver for economic growth and generates countless jobs across its various verticals and associated industries
2. Relax norms for repatriation of FDI in real estate. The market environment needs to be rendered more investment-friendly
3. Enact legislation on REITs to provide exit opportunities to real estate investors
4. Bring out strong and convincing evidence of intention to implement the proposed real estate regulator in 2012, and provide single-window clearance for real estate development projects
The writer is Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India. To read more by him and other real estate experts, visit www.joneslanglasalleblog.com/realestatecompass.