Budget to put pandemic-hit real estate sector back on track
New Delhi [India]Feb 6 (ANI / NewsVoir): India’s real estate sector, which has been hit by a global pandemic, is now back on the road to recovery. In view of the increasing economic activity, important announcements in the Union budget have raised hopes for this sector.
Industry leaders praise and welcome decisions made by Treasury Secretary Nirmala Sitharaman. Well-known experts believe that key budget announcements like tax exemptions for affordable housing projects, debt financing by foreign portfolio investors (FPIs) in real estate investment funds (REITs), and infrastructure investment funds (InvITs), better connectivity will bring back investor and homebuyer confidence and reinvigorate confidence, growth and investment in this emerging sector.
“The budget reflects the government’s efforts to restore confidence and energy to the Indian economy in order to achieve a ‘V-shaped’ recovery. The six pillars of the budget (health, physical, financial capital and infrastructure, including development for Emerging India) The revitalization of human capital, innovation and RD, as well as minimum government and maximum governance as outlined by the FM, will give direction to the country’s economy that has suffered a tremendous turmoil due to the pandemic, tax break and announcement of a One year of tax vacation will restore confidence in home buyers and strengthen the affordable housing sector. The change in double taxation of NRIs will also act as a catalyst for investment in that sector. The country is on the way to recovery and this budget ensures that, ” he told Amarjit Bakshi, CMD, Central Park .
Affordable Housing to Boost State Capitals and Tier 2-3 Cities – The government has tried to push through its ambitious goal of creating housing for everyone.
“State capitals and tier 2, 3 cities will benefit immensely from the government’s focus on sectors such as roads and highways, ports, electricity, urban infrastructure and railways. Add the affordable housing boost by extending tax breaks on such projects. ” A year that adds one year to the deadline for first-time buyers to claim an additional Rs 1.50,000 interest deductions on home loans, and the tax exemption for affordable rental apartments will further fuel demand for housing in these cities, “said Mohit Goel, CEO , Omaxe Ltd.
“The 2021-22 budget was enacted to pave the way for political support in the housing sector. This budget provides for a tax exemption for rental apartments that has been extended by one year to provide affordable housing for the marginalized workers March 31, 2022 and tax break for affordable housing projects are welcome, “said Rahul Singla, Director of Mapsko Group.
To attract more investment in affordable housing, the government has made debt financing more accessible. “This sector has high hopes for investing. By making REITs (Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) more flexible, new investment opportunities for topping up funds are opening up,” said Shashank Vashishtha, Executive Director of eXP India.
Global Investment to Strengthen Domestic Manufacturing Center – To make India’s domestic manufacturing center “Atmanirbhar”, the government has also opened new avenues for global investment.
“Given the number of proposed steps to help the MSME sector set up textile parks, the budget emphasized strengthening domestic production. The budget proposed additional tax incentives for companies moving foreign funds to GIFT City, which is a The laudable choice is from GIFT City, a global financial hub. From creating jobs to driving real estate demand, these initiatives are likely to deliver the economic multiplier effect that is the order of the day, “said Anuj Kumar Garg, vice president of customer loyalty, Viridian ROT.
The government has increased its focus on infrastructure growth and better connectivity – economic corridors, highways and subways to start commercial activities.
“The budget has given appropriate emphasis to the infrastructural development, which is a prerequisite for almost all economic activity in the country. The development of economic corridors, national highways and underground projects will ensure easy transportation and accelerate commercial activities. These Activities will continue to drive development. ” Grow the commercial segment of the real estate sector and will indirectly drive the real estate segment as well, “said Pankaj Bansal, Director, M3M.
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