Enquire Now
Enquiry Form
Akshaya logo

Budget'17 Big Boost For Real Estate Industry
1st Feb 2017

"It’s a well presented budget that augurs great tidings for the realty sector. Some of the big wins include the 'Infrastructure' status for the affordable housing category, Capital Gains reduced to 2 years and the base year moved from 1981 to 2001, all of which will boost our business greatly. Joint development deals will see a big rush with the clarification in the Capital Gains tax payable only on completion. We expect both the lending rate and the housing loan interest rates to drop with banks flush with surplus 'DeMo' funds, this will help builders get access to cheaper funds and will also augur well for consumers.  

 

'Affordable Housing' has been defined better with clear cut measurements (30 to 60 sq meters) which will help builders come up with planned housing units for the masses. With affordable housing made more realistic, houses with a carpet area of 30 to 60 Sqm will be termed affordable housing instead of units with a built up area of 30 to 60 sqm. Also of note would be the 30 sq.mtr limit which will apply only in case of the municipal limits of 4 metro cities while for the rest of the country including the peripheral areas of metros a limit of 60 sq.mtr will apply. All these efforts can help the government move closer to its vision of ‘Housing for All by 2022’.

 

With better clarity on joined development capital gain which is payable only on project completion is likely to give a major push to the land owners to engage more in joined development deals. Reduction of Capital gains tax- holding period for immovable property to 2 years is again a big win. With the budget proposing a positive regulatory environment that is turning pro-consumer is all set to make investment in real estate more attractive for the NRIs as well. With a greater push to digitization, cash flow in the economy is set to grow through the digital pipelines making the transactions faster, secure and more transparent".



Leave Comment

Fields marked with * are mandatory
 

Comments (0)

Be the first one to comment.