India’s actual property sector which was engulfed by a worldwide pandemic is now again on street to restoration. With financial actions gearing up, key bulletins within the union finances have raised hopes for this sector. Trade leaders are lauding and welcoming selections taken by Finance Minister Nirmala Sitharaman. Eminent specialists opine that main finances bulletins like tax exemptions on reasonably priced housing tasks, debt financing by overseas portfolio traders (FPIs) in actual property funding trusts (REITs) and infrastructure funding trusts (InvITs), higher connectivity will carry again confidence amongst traders and homebuyers, reviving belief, progress and investments on this rising sector.
Union Finances 2021 – 22
Nice steps to make sure nation’s street to restoration
“The budget is a reflection of the governments efforts to re-instill confidence and energy in India’s economy for a ‘V-shaped’ recovery. The six pillars of the budget (health, physical, financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance), as outlined by the FM, will give a direction to the countrys economy, which suffered a huge jolt due to the pandemic. Tax reliefs and announcement of one year’s tax holiday will bring back confidence in home-buyers and will boost the affordable housing sector. Change in double taxation on NRIs will also act as a catalyst for investment in this sector. The country is on its road to recovery and this budget ensures the same” mentioned Amarjit Bakshi, CMD, Central Park.
Reasonably priced housing to spice up in state capitals and tier-2, 3 cities – The federal government has tried to push its bold goal of housing for all.
“State capitals and tier-2, 3 cities will benefit immensely from the government’s focus on sectors like roads and highways, ports, power, urban infrastructure, railways. Add to it, the affordable housing boost, by extending tax holiday for such projects by one year, extending by one year the deadline for first-time homebuyers to avail additional Rs 1,50,000 interest deduction on home loan, and tax exemption for affordable rental housing will further boost demand for housing in these cities,” mentioned Mohit Goel, CEO, Omaxe Ltd.
“Budget 2021-22 has been enacted as a game-changer for policy support in the residential sector. This budget embraces a tax exemption for rental housing that has been extended for a year aiming to provide affordable housing for the marginal workers. The extension of interest deduction amounting to 1.5 lakh until 31st March 2022 and tax holiday for affordable housing projects are welcomed,” mentioned Rahul Singla, Director, Mapsko Group.
Moreover, to draw extra investments in reasonably priced housing tasks, the federal government has made debt financing extra accessible. “This sector has high hopes when it comes to investment and by making REIT (estate investment trusts) and InvITs (Infrastructure investment trusts) more flexible, new roads of investments will open to augment funds,” mentioned Shashank Vashishtha, Government Director – eXP India.
International funding to strengthen home manufacturing hub – To make India’s home manufacturing hub ‘Atmanirbhar‘, the federal government additionally unlocked new avenues for international investments.
“From the number of steps proposed to support the MSME sector to set up textile parks, the budget stressed strengthening domestic manufacturing. The Budget proposed additional tax incentives for the companies relocating foreign funds to the GIFT city, which is a laudable decision in the making of GIFT City a global financial hub. From the employment generation to push real estate demand, these initiatives are likely to bring the economic multiplier effect, which is the need of the hour,” mentioned Anuj Kumar Garg, Vice President-Buyer Engagement & Distribution, Viridian RED.
Financial corridors, highways, and metros to kick begin industrial actions – The federal government has elevated its deal with infrastructure progress and higher connectivity.
“The budget has given adequate emphasis on infrastructural development which is a prerequisite for almost all economic activities in the country. Development of economic corridors, national highways and metro projects will ensure easy transportation, giving pace to commercial activities. These activities will further spur the growth of the commercial segment of the real estate sector and will indirectly push the housing segment as well,” mentioned Pankaj Bansal, Director, M3M.
Join Our Telegram Channel