Published: Sun, February 04, 2018
Business | By Tara Barton

Budget 2018: Low cost homes boost to realtors

Budget 2018: Low cost homes boost to realtors

To boost the supply of rural housing and augmenting the supply of affordable housing in urban areas, the finance minister said 3.7 million homes will be built in urban areas in 2018-19 and 5.1 million homes in rural areas. In urban areas, assistance has been sanctioned to construct 37 lakh houses. As a result of the government's move to create a dedicated fund for affordable housing, more developers will embrace this segment of real estate, creating much-needed traction on the ground.

The government has a fixed a target that every poor of this country may have his own house by 2022. Last year, these were further strengthened with the implementation of Real Estate (Regulation and Development) Act, 2016, (RERA) and GST, which have started impacting the sector positively.

Managing Director SARE Homes, Vineet Relia on Thursday said that Union Budget has brought in some relaxation for the housing sector. "The move will help in improving formal finance penetration in the system, enabling strong growth in affordable housing loans", said Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd.

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Standing in sync with Gupta of CREDAI Ghaziabad chapter; Abhishek Bansal, Executive Director, Pacific Group said, "The government has shown keen interest towards enhancing the connectivity and infrastructure in the country by proposing an amount of Rs 50 Lakh crores".

Among the several major proposals for the sector in this year's Budget, the government aims to establish a dedicated affordable housing fund in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the Government of India. The government has been consistent with its efforts in addressing affordable housing in 2017 - be it giving infrastructure status to this segment in the previous budget, to helping increase the quantum of beneficiaries in CLSS under Pradhan Mantri Awas Yojana by expanding the carpet area and re-defining income definitions. Creation of the Affordable Housing Fund will certainly ease the funding gap. However, the outlay of 2.04 lakh crore for 99 cities under Smart City mission is heart-warming. "Real estate sector did not see a direct incentive today, but better infrastructure and connectivity will pave way for greater housing and commercial demand in the developing regions". Experts and developers also referred to the relief in taxes in the form of a 5 per cent range where real estate transactions are undertaken below stamp duty value.

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