The budget should modify excise and import duty structure to reduce these costs by at least 20 per cent. Developers also raised the issue of input costs and felt the need to rework the excise and import duties on steel and cement to restrict the cost of construction. Prices of steel and cement - the two most important inputs for construction - have jumped 30 to 50 per cent in six months and have impacted the real estate prices.
Aggregate FDI inflows into the real estate sector are recorded at approximately 7.42 per cent of the total inflows. The government should think of providing genuine relaxation from the lock-in requirements, which would give some relief to foreign investors.
