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Q: Real Estate Investement in Affordable Housing

adanisamsara, Gurgaon

12th February 2017

Home Loan in Sector-60, Gurgaon

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Gurgaon Sector-60 Home Loan Home Loan in Gurgaon Home Loan in Sector-60

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Yes, on the other hand, easy and dedicated access to institutional financing, higher limit on external commercial borrowings will attract more investments and assure continued growth of affordable housing in India, making it the basic driving segment for real estate. Similarly, long term financing at lower rates will reduce costs of construction for developers allowing them to pass on benefits to consumers.

shivadooti,

17th February 2017

Comment

Not only this, to make affordable housing scheme more attractive, the Finance Minister also expanded the definition of such units. As per FM, “Instead of built up area of 30 and 60 sq-mt, the carpet area of 30 and 60 sq-mt will be counted. Also the 30 sq-mt limit will apply only in case of municipal limits of four metropolitan cities while for the rest of the country including in the peripheral areas of metros, limit of 60 sq-mt will apply.

Shaunak Verdla, Mumbai

17th February 2017

One-by-one, there are so many benefits for the home buyers in this budget. The Finance Minister also extended the profit-linked income tax exemption for promoters/developers of affordable housing schemes. In order to be eligible, the scheme was to be completed in 3 yrs after commencement which has now been extended to 5 yrs.

Piyush S, Greater Noida

17th February 2017

@Piyush,
Also, the base year for indexation is proposed to be shifted from 1 April 1981 to 1 April 2001 for all classes of assets including immovable property. This move will significantly reduce the capital gain tax liability while encouraging the mobility of assets. This would allow sellers to limit their tax liability by reducing the considered capital gains.

shivadooti,

17th February 2017

Hi,
Government has announced many initiatives for affordable housing sector so far. However it requires funding in the form of equity and debt capital. Union Budget 2017 has incentive investments in affordable housing. Affordable housing is the need of the hour and thus it becomes more and more crucial to push it through government initiatives like Smart Cities, “Housing for All” and AMRUT.

Piyush S, Greater Noida

17th February 2017

Comment

Right Piyush.....the Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6% to the country's Gross Domestic Product (GDP). The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. In the recent budget, The most prominent move was the decision to give infrastructure status to low cost housing. This would boost development of such units as developers and buyers alike can benefit from associated benefits including lower borrowing rates and other tax advantages.

Shaunak Verdla, Mumbai

17th February 2017