HOME SWEET HOME Infra Status Lays Foundation for more Affordable Housing Measures include tax sops based on carpet area, pledge to build 1 crore rural homes in two years
Kailash Babar & Sobia Khan
Mumbai|Bangalore: Finance minister Arun Jaitley has proposed infrastructure status for affordable housing and other steps, including a pledge to build one crore rural homes in two years to help provide housing for all by 2022.
This will help affordable home developers access cheaper institutional funds and tax exemptions to improve margins, along with increasing supply. The Budget also offers tax incentives for affordable housing based on carpet area and not built-up space, which will help buyers get bigger-sized homes. “We could not have hoped for anything better. The realty sector is thankful to the government for understanding the need to enable efficient supply of housing stock,” said Getamber Anand, president of Credai, which represents real estate firms.
The new credit-linked subsidy scheme for middle income groups with ₹ 1,0 00 crore allocation is expected to enable access to cheaper capital. Given the government’s thrust, f low of institutional funding to affordable housing is likely to rise.
“Giving infrastructure status opens up a lot of avenues to raise capital domestically from insurance companies and pension funds,” said Sunil Rohokale, CEO of ASKgroup.“With80IBbenefitscontinued for next five years commercially, projects are more viable.” National Housing Bank has been allocated ₹ 20,000 crore to refinance home loans while Pradhan Mantri Awas Yojana gets ₹ 23,000 crore.
“Promoters of affordable housing projects will benefit from proposal of two-year extension from the earlier timeline of three years,” said AnujPuri,countryhead,JLLIndia.
Well-Built Budget 20,000 crore loans
Developers to get on
NHB to refinance PMAY to get