Real estate sector gets affordable status boost
Finance minister Arun Jaitley on Wednesday gave infrastructure status to affordable housing in a move aimed at boosting the real estate sector and meeting the government’s goal of providing a home to every Indian by 2022.
Benefits will accrue to consumers in the form of lower costs in a sector that has seen a slump over the last few years and was hit the hardest by the government’s demonetisation drive.
“Long-term financing at lower rates will reduce costs of construction for developers allowing them to pass on benefits to consumers. The new status will increase the resource allocation for the sector, catalysing housing supply and reducing the supply gap,” said Brotin Banerjee, managing director and CEO, Tata Housing Development Company.
Allocation for the Prime Minister Awas Yojana (PMAY) was raised from `15,000 crore to `23,000 crore, though no specific incentives were announced for first-time buyers.
Under the housing-for-all plan, Jaitley said 10 million dwelling units will be built by 2019 in rural areas for the homeless and those living in ‘kuccha’ houses.