The budget proposed extension of tax benefit of up to Rs 1.5 lakh for affordable home buyers in the union budget to encourage customers to buy homes and revive the real estate economy.
Union Budget 2020:Amid the economic growth slowdown, Finance Minister Nirmala Sitharaman on Saturday announced a slew of measures to boost the stressed real estate sector. However, the budget has failed to address the major concerns of the realty sector, analysts said. Even as the budget introduced some positive measures, there are no sector-specific measures in the sector.“The labor intensive real estate sector which had pegged hope on additional liquidity infusion, tax reforms and rental housing were overlooked in the budget. Any fiscal measure in the sluggish real estate sector could have provided a fillip. Wherein, tax benefits extended to both homebuyers and Developers in affordable housing sector will encourage more launches in this segment. Also, abolishing the dividend distract and opening of International bullion market scores eyeballs for global investors to draw investment in Indian IFSC”, Niranjan Hiranandani, National President, NAREDCO, said.
The budget restores some of the lost confidence in the India growth story – and more importantly, within India Inc. – by laying emphasis on wealth creators, Anuj Puri, Chairman – ANAROCK Property Consultants said. However, apart from the affordable housing push and personal tax relief, no major benefits came in for resolving the current housing mess, he added.
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The budget proposed extension of tax benefit of up to Rs 1.5 lakh for affordable home buyers in the union budget to encourage customers to buy homes and revive the real estate economy. “Budget 2020 doesn’t have anything that directly affects the real estate sector and the government’s focus continues to remain on increasing the consumption demand and liquidity in the market, said Ramesh Nair”, CEO and Country Head, JLL India, said. Some of the analysts also said that the industry was waiting for the rental housing policy, one-time rollover of developers’ loan and the 45 lakh limit to be removed in affordable housing definition.