Budget has very little room for real estate sector: Man Infra

Nikhil Mansukhani, director, Man Infraprojects, commenting on the budget said, “The Finance Minister Pranab Mukharjee has successfully managed to propose a consolidated budget for FY 2010-11 ensuring the sustainable growth with much required fiscal consolidation. However budget has very little room for real estate sector as only residential segment have seen some sort of benefits from it.“

“Commercial real estate segment is completely ignored in this budget. Reforms like promoting Real Estate Mutual Fund and relaxing FDI norms for the sector and service taxes on rental income from commercial properties are supposed to be addressed for fulfilling the financial requirements of the sector. However, the budget did not address these key issues. Also duties on raw materials like cement are increased by 2% which may lead to higher cost of production and this is definitely not good news for the real estate sector which is already in a stage of slow recovery post economic slowdown,“ he concluded.