“The sector has been facing numerous challenges, such as lack of institutional funding, tax framework, lengthy approval processes and slow pace of infrastructural development. This year’s budget ensures that these issues are addressed and the focus of the government towards proposing some growth-oriented policies for India’s real estate sector is appreciable. Easing the tax norms for REIT, Allocation of Rs. 4,000 Cr For Affordable Housing Via National housing bank will bring Optimism in the real estate sector which will result in surging positive effects on the economy.
Besides, a number of initiatives like The additional tax exemption on housing loan interest for self-occupied homes raised to 2 lakhs from the present rate of 1.5 lakhs, is also commendable and this will make it an interesting proposition for buyers, investors and developers. Metro cities will get benefited with a decrease in built up area for FDI in Real Estate. The development of smart cities along with industrial corridors will further give the fillip and will have multiplier effect. The proposed policies will encourage activity in Real Estate industry and bring a wave of fast track development.
The author is Gaurav Gupta, General Secretary, Raj Nagar Extension Association & Director SG Estates