Budget boosts affordable housing
The much awaited Union Budget 2017-18 has been finally announced and has scored high in terms of impressing the countrymen, with the realty sector making the most out of it. The New Year Eve of 2017 saw incentives announced for the affordable housing segment which was followed by the banks declaring lending rate reductions very next day. Teasers about positive changes in the personal income tax structure were making rounds well ahead of the Budget day too.
By granting infrastructure status to the affordable housing segment, reducing the tax rate for the initial slab and big plans laid for the infrastructural development of the country, this Union Budget has expressed its road ahead for the realty sector of the country which will now bet big in near future. As predicted, a common man’s Budget has been presented and this is expected to bring about a transformation in the economy.
The developers as well as the other sectors have also hailed the budget. “Affordable housing being given Infrastructure status is a welcome move and will help for Housing to all by 2022. Special funds under Pradhanmatri Awas Yojna and NHB will bring huge opportunity for a large no of home buyers. Govt. focus for developing road infrastructure, manufacturing and affordable housing will not only help to decongest urban area but also help to development of new industrial cities around our industrial transport corridors. Affordable housing area criteria based on carpet area instead of build-up area will give benefit to more buyers. Real estate developers to get tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed,” said Pawan Jasuja- Director, Find My Property.
Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group said that as anticipated, a populous budget has been announced by the government which will allow the young generation to save more and invest further. This budget saw the government offering several benefits to the realty sector, at the same time missing out on a few important decisions. Single window clearance system is still not implemented across the country which is hampering the delivery schedule of the developers. Amongst the major hits, the criteria for affordable housing has been changed from built up area to carpet area basis. This will allow affordable housing segment to look more lucrative for both, developers and buyers. With the income tax rebate for the first slab and affordable housing incentives in place, we will now observe the youth of the country looking out at realty sector as an avenue for investment or residing.
Aji Nair - Chief Operating Officer, F&B Division, Mirah Hospitality said that the announcement of setting up 5 special tourism zones will also attract more traffic. “These special tourism zones would be created as Special Purpose Vehicle (SPVs) in connection with the state government which again is a positive move for the industry and indicates a high potential of increase in job opportunities. Extending tax holidays for start-ups up to 3 years of the first seven years will attract more entrepreneurs to the hospitality sector. Overall, the budget would bring back the lost sheen to the segment", he added
Key Hits from the Budget:
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