The real estate industry in India has high expectations from the first full Modi budget, especially because the previous budget focused on common man.
The coming budget is expected to lay ground for affordable housing in India. The budget is likely to bring in some incentives for the first time home buyers and the affordable home buyers such as tax rebates and decreased home loan rate. The realty industry will only improve once the buying power of buyers increases.
An increase in tax savings under 80C from the current INR 1.5 lakhs and home loan exemption rate from the current INR 2 Lakhs would increase the buying capacity of home buyers and thereby help recover the realty industry.
Real Estate Investment Trusts (REIT’s) should be fast tracked as it will give the much needed push to the realty industry in India. The budget is also expected to have some inclusions to promote foreign funding for the infrastructure projects.”