Real Estate sector should survive on market economy and not on subsidies –Jaitley

Real Estate sector should survive on market economy and not on subsidies –Jaitley “Easy availability of land crucial for realising the dream of affordable housing” 

​The ​Union Finance Minister  Arun Jaitley today said that the real estate sector has huge potential for growth and hoped that the period of slow down would end soon.

Delivering the key-note address at the CREDAI-BANKCON  2015 on Role of Banking and Finance in Real Estate Development in Mumbai​ today​, Mr Jaitley said the sector will be the next big mover as far as the Indian economy is concerned, but added that the industry must survive on market economy and subsidies should not be the essence of survival.

The Finance Minister said the Government was committed to housing for all – a dream project of Prime Minister Narendra Modi, and would adopt positive approach.  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.

The ​Finance Minister emphasised on the need of more townships, sub-urban townships and smart cities to lead the economic development of India.

About the taxation proposals made by CREDAI, the Finance Minister suggested the Real Estate body to make a presentation before the newly appointed committee reviewing the Income Tax Act.           

The Finance Minister said the 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.  The Minister added that recapitalization of public sector banks would give more strength and muscle for the banking sector to lend.

Speaking about the macro-economic issues the Finance Minister said, “India as a country has become more aspirational and the constituency which supports growth has become bigger. Populist slogans of 60s and 70s, which were essentially obstructionist in nature have lost their relevance”.

Mr. Jaitley said the newest norm in the world was volatility and turmoil. “It is a challenge for India, where as we remain globally integrated, our systematic firewalls have to be such that our ability to resist volatility and turmoil is strengthened”, he added. 

Speaking at the conference Chief Minister of Maharashtra Mr. Devendra Fadnavis said that his government remained committed to reforms. He assured that total transparency would be ensured by creating e-platform to provide a hassle free business environment .  Mr. Fadnavis appealed to the real estate sector to bridge the gap between demand and supply by changing the focus from premium housing to affordable housing.