Developers and those linked to real estate businesshave stated that the Budget will provide a boost to realty market, especially in the affordable housing segment.
“Earlier, there used to be a limit of 30 sq metres and 60 sq metres built-up area for affordable flats within 25 km of the metro cities. Now, the latest Budget allows us to make 30 sq metres and 60 sq metres of carpet area for affordable houses, which will also benefit common man looking for a larger, yet, affordable flat,” said former secretary of Maharashtra Chamber of Housing Industry (MCHI-Navi Mumbai Manohar Shroff.
Builders Association of Navi Mumbai secretary Haresh Chheda stated that the budget has also extended the time limit for construction from three years to five years. This will ensure better housing infrastructure, said Chheda.
The Affordable Housing sector could not have asked for a better budget. The Union Budget for 2017-18 has brought in a series of policy directives that are a positive move to the Affordable Housing Sector. Especially, the government’s move to impart infrastructure status to this sector. It’s been a long standing ask that has finally materialised,” said Rajesh Krishnan, CEO, Brick Eagle. His company has affordable housing projects in Maharashtra, Tamil Nadu, Gujarat and Rajasthan.
Krishnan further stated, “Extending the project duration from 3 to 5 years to avail the tax break under Section 80-IBA of Income Tax Act is another major move in favour of developers. These steps will lead to a multi-fold increase in affordable housing.”
For the affordable home buyer, rates are likely to come down further with The National Housing Bank (NHB) taking on incremental 20,000 crore refinance. Also, market analysts informed, increasing the loan tenure for CLSS (credit linked subsidy scheme) from 15 to 20 years would lower the EMIs, thereby enhancing affordability.