Real es­tate sec­tor gets af­ford­able sta­tus boost

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - Van­dana Ram­nani let­ters@hin­dus­tan­times.com

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.

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