The real estate sector found the Union Budget for 2016-17 disappointing because it did not fulfill the key expectations, other than affordable housing. After the second extensive budget accompanied by the announcements of Smart Cities and infra revamp across the nation, hopes were high for the current government.
Real estate developers, however, had varying opinions on the Union Budget. According to Manoj Gaur, President of CREDAI NCR, the budget zeroed in on some major issues that affect real estate sector positively, Hindustantimes reported. The government is also looking to uplift affordable housing so that everyone will have a home by 2022. Every citizen will benefit from the 100 percent service tax exemption in making houses up to 30 sq. m. and up to 60 sq. m. in others.
Navin M Raheja, CMD of Raheja Developers, on the other hand said that the budget has very little to offer for the overall balance of the industry in terms of financial relief which is currently struggling. However, Raheja also says that the focus on a high budget for infrastructure development will always be a positive sign for the real estate sector and will help the overall progress of the real estate market.
Raheja continued by saying that an abolition of service tax for housing less than 60 sq. m coupled with a 100 percent deduction to entities in affordable housing will encourage more investment, Jllapsites reported.
The Vice President of CREDAI Western UP Amit Modi stated that even if the Union Budget brings benefits to the infrastructure sector, it is not for housing and real estate development purposes. He says that the Union Budget will bring more relaxation for the housing sector, but it has failed to meet the expectations of the realty sector. However, he thinks that the Union Budget is comprehensive and well-rounded with initiatives for real estate. In the end, experts are hopeful that it will create a huge scope for first time and individual homebuyers.
