Jones Lang LaSalle India [Apr 2012]

Indian real estate sector does not have much to cheer about. The increase in the service tax rate from 10% to 12% will increase the cost of production for developers, who are already reeling under high input costs. It follows that this increased burden will be passed on to end users. Allowing ECB for affordable housing is, without doubt, an excellent move. It will ensure better capital availability for developers of low-cost housing. The postponement of a firm decision on FDI in multibrand retail came as a disappointment. Measures to increase funding for highways and other infrastructure will help put more territories on the real estate map.-Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India

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