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

The Economic Times - - Front Page -

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

re­lief

NHB to re­fi­nance PMAY to get

23,000 crore

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