TODAY REALTY SECTOR GETS A BOOSTER SHOT

Industry gives thumbs up to FM; Expects buoyancy in demand and additional supply

The realty industry, which was impacted heavily because of the coronavirus pandemic and economic downturn, has received a much-needed booster shot in the budget presented by the Finance Minister Nirmala Sitharaman on Monday. The government has responded positively to the realty industry’s demand by extending the period for extra deduction of Rs 1.5 lakh available for loans up to March 31, 2022. Further, the FM has proposed extension of the tax holiday for one more year.

ANAROCK CMD Anuj

Puri said the union budget was literally a make or break even considering the ‘’Margaret Thatcher moment.’’ ‘’As anticipated affordable housing and rental housing got a big boost with the extension up to March 31, 2022 for extra deduction of Rs 1.5 lakh available for loans. This will keep demand buoyant for affordable housing in 2021 as well. Further, extending the tax holiday for affordable housing projects for one more year will help bring in more new supply within this segment,’’ he said.

According to ANAROCK Research, affordable housing already accounts for more than 35% of the supply across the top seven cities in the country.

Hiranandani Group MD Niranjan Hiranandani said the FM’s proposals reinforce the Government’s focus on affordable housing. ‘’For the home buyer, the second extension of the deadline till 31 March 2022 for the additional Rs1.5 lakh tax deduction given on loans taken to buy a house in an affordable housing project is welcome, as is the developer whose affordable housing projects also get an extension for tax benefits, for projects completed till March 31, 2022. This will give a fillip to this emerging segment. As affordable housing attracts only 1% GST and Rs 1000 stamp duty in the state of Maharashtra will augment the production of affordable housing in the state,’’ he noted.