Govt delivers on ‘Housing For All’, says expert

The Union Budget 2016 on the whole is balanced and highly positive as it looked into almost every aspect and how things can be changed for the betterment of our nation.

The opportunities it has opened are huge and can dramatically change the whole dynamics of the economy once implemented. It shows tremendous worth and can change the real estate market from the situation it is at.

There were endless expectations of real estate developers from the Union Budget which did dampen the enthusiasm initially however if one sits back and analyses the whole initiative of “Housing For All”, you can see how well the government has acted upon its words and promises.

For a consumer the ‘No Service Tax for houses built under 60 square metres’, will have a encouraging outcome as it will add to the savings of approximately 4% making other investments possible for him/her. In addition to this, the consumers on rental property too will benefit with the HRA exemption that has been raised to Rs 60,000 now.

Even the exemptions on home loans for first time buyer the market is bound to see a boost in sales. For that matter, even getting rid of the dividend distribution tax on Real Estate Investment Trusts (REITs) will help larger players like developers, private funds and financial institutions to invest, mobilize and stabilize the higher segment and luxury real estate market.

The focus upon rural development sets in a lot of opportunity in the Tier-3 cities as well making greater possibilities for the real estate sector to gradually pick up base.

(The article is authored by Akhil Kumar Sureka, Managing Director, Sarvome Developers)