With a keen eye on the 2019 Lok Sabha elections, Finance Minister Arun Jaitley presented the much-awaited budget 2018 earlier today in the Lok Sabha. The budget managed to fulfill dreams of rural India and gave a much-needed boost to empower women in the country. The budget also had provisions that affect an increase in the prices of mobile phones and televisions with an increase customs duty from 15% to 20%. However, the budget giving the real estate sector almost a miss was notable. Yet, it did shed some light on the prospects of the sector for the next fiscal year. The initiative with respect to the affordable housing fund in the National Housing Bank is much appreciated.
The goal of housing for all by 2022 is quite on the track as the government is planning to build one crore houses under PMAY (Pradhan Mantri Awas Yojana) and will also setting up a dedicated housing fund under the NHB for priority sector lending. The demand will also escalate as the home buyers will be provided with the ease of credit for aspirational or affordable homes. The mission of building a smart city is another step in the right direction and will effectively influence the demand for housing in times to come. These steps will help the real estate sector to enhance and accelerate the growth. The indirect advantages should also be considered and well utilized.
The focus on job creation in the infrastructure sector in the Union Budget 2018 is noteworthy. Though there wasn’t any direct benefit accorded to the realty sector this time, the proposal to develop 4 lakh kilometers of road and upgrading rural infrastructure will greatly bring up the Tier 2 and 3 cities of India on the reality map. This will help boost housing demand and investment opportunities for those regions.
Budget 2018-19 though has not got the best deal for the real estate sector but has got some silver lining still and with correction execution it may benefit the market in the long run. Let’s start the new financial year with positivity and dedication for good times to come.
Source – Financial Express