The recent measures announced by the Centre to reduce import duties on select raw materials such as steel and plastic along with steps to improve the supply of cement are expected to boost the sentiments of developers and end-users.
Besides, a cut in central excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel to check inflation is another timely taken progressive step.
Owing to the surge of property prices, the realty sector has been urging the Centre to take necessary measures that will ease the burden on the developers. These latest moves would spike housing demand among consumers, realtors believe.
Here’s what some of the developers have to say on the Centre’s latest measures:
These moves will surely provide some cost relief in terms of steel and cement prices, said Sandeep Runwal, President of NAREDCO Maharashtra.
“The reduction in fuel and cement prices will have an overall good impact on the real estate sector to keep the prices in check. However, we also request the government to work on making interest rates on home loans lower and making GST input credit available to the developers at the current GST slabs. This will surely reduce the home prices, making it beneficial for the larger part of the society,” he said.
Pritam Chivukula, Co-founder & Director, Tridhaatu Realty, said the government’s significant decision to reduce import duties on the steel products is a much-needed intervention that will act as the catalyst in driving the momentum of the industry.
“This shall surge the raw material availability in the country and put a stop to the ever-increasing prices in the market. The government’s step to subside the inflation shall act as a propeller to strengthen consumer sentiment and help in maintaining project prices,” he said.
Additionally, Chivukula urged the government to lower the interest rates on home loans making home buying buoyant for potential buyers.
Himanshu Jain, Vice President (sales and marketing), Satellite Developers, said it is a much-appreciated step taken by the government to reduce the prices of steel and cement supplies to help realtors trim construction costs.
“The reduction in the prices of raw material will have an optimistic impact on the sector to keep the prices in check. Further reduction of fuel prices will only pave a smooth way for the sector and reduce the pressure on the end consumers,” Jain said.
Shraddha Kedia-Agarwal, Director, Transcon Developers, said: “We appreciate the government’s intervention in stabilising the inflation of the market. This was a much-needed step to help neutralise the market condition.
“Cutting excise duty on raw material imports and fuel will definitely drive the positive sentiment of the end-user and the sector by the easy availability of the materials used in construction activities.”
Sachin Chopda, Managing Director at Pushpam Group, said the government’s recent announcement is quite commendable which shall give much-needed relief to the developers and the end users.
“The reduction in import duties on iron ore and steel shall further pad the domestic availability of raw materials, which in return shall reduce the prices of steel products used in construction and control the rising prices of properties. The measures announced by the government will only drive the momentum of the market and control the inflation rate,” Chopda said.
Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory, said the government’s intervention to tackle inflation by reducing customs duty on raw materials, lowering excise duty on fuel and an increase in export duty on iron ore and steel intermediates will further boost ‘ease of living’.
“For the realty industry, these measures will surely taper down the concern of the possible impact of the rising cost of construction inputs and bolster the overall infrastructural development,” Agarwal said.