Budget 2021: Requisites to Enhance Commercial Realty Investments

Commercial Realty has been a thriving investment asset class in India. Alongside strategy changes, institutional ventures, foreign affiliations and development in the IT-ITeS sector have been some of the contributing factors that spawned alluring interest in the commercial realty segment to an extent that global investors are also wagering enormously despite the pandemic woes.

Some of the striking government actions like Make in India, RERA, GST, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), India is required to proceed with its development in the commercial sector in 2021 and beyond attributable to guaranteed and rewarding degrees of profitability.

To additionally impel the development of commercial real estate in the nation, it is anticipated that the government will inspect into some worrisome quarters and try out to bring the remedial measures for these vital issues to help the economy.

Some of the pertinent issues that need to be sorted so that the commercial realty can regain its old glory are:

• Stamp duty needs to be reduced
• GST input credit on rent received has to be allowed for commercial office space developers
• GST cut for joint development deals on TDR (Transfer of Development Rights)
• Digitization of land records in urban areas