Commenting on the Union Budget 2017 that was presented by Finance Minister Arun Jaitley today, Anshuman Magazine, Chairman of India and South East Asia CBRE said, “Overall, the Union Budget 2017 augurs well for real estate, affordable housing and the infrastructure segment.”
He is happy to know that affordable housing sector is finally set to get infrastructure status which was a long-awaited announcement. Further, when the government has also increased allocation under the PMAY scheme, according to Anshuman, this will encourage home buyers and further boost participation from the Private players.
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Calling airport authority of land act amendment as another positive move, he further added that it will allow development of land around the airports and improve infrastructure and more importantly increase funding for the development of the airports. This is over and above the record allocation made to the overall infrastructure sector.
Meanwhile announcement of abolition of the FIPB by the finanace minister, Anshuman said that this would encourage greater fund flows into the economy, though a clear policy outline is yet to be revealed. “This is another positive step to liberalize FDI policy framework and ease regulatory hurdles in attracting investments,” he said.
Anshuman further added, “The government has also been accommodative of the concerns of the real estate sector. The relaxation on long term capital gains, joint development agreements, tax rebates for builders will help reduce their tax liability. While greater rebates were expected in individual tax rates, nonetheless the rebate for individuals earning upto 5 lacs will help increase their disposable incomes. This might help spur consumption and also have a positive impact on demand for housing. ”