Finance Minister Arun Jaitley in the budget session 2017-18 has given the much-awaited push to the real estate sector. ‘Affordable Housing’ getting infrastructure status will change the destiny of real estate by inviting participation from many private players. This announcement will spur the objective of ‘Housing for all’ by 2022. The demand for affordable housing in our country is huge and the best part is the interest shown by a large number of corporate groups in this division. This will facilitate timely delivery of the projects which until now was a major challenge in the realty sector.
Home buyers will now get speedy deliveries of the project and will not have to wait endlessly. The credit off towards affordable segment will create supply for the first time buyer and the developers, who will now get cheaper funding. Now the affordable housing sector will be more profitable for the builders and more engaging for the buyers. The budget also comprises of tax incentives for affordable housing based on carpet area and not the built-up area, which again is an offer for the buyers to get bigger sized homes.
The development and conversion of real estate sector into real estate industry to avail the special and lower borrowing rates from the banks have been an evergreen demand. The implementation of the infrastructure status will give a major boost to the affordable housing sector in India. The government has already declared subsidy scheme for the first time home buyers, lowering the cost of borrowing for home buyers and developers, giving a yet again boost to the affordable housing segment. By the implementation of the infrastructure status, the government has indicated its importance in the economy. Developers interested in the affordable housing segment are eligible for various government incentives as well.
The sector is definitely going to benefit the infrastructure sector status, fulfilling the long time demand of the realty industry. The new measures will reduce the cost for developers and will draw more investors. It is a major boost for the ‘Housing for all’ vision and will be a great aid for first-time buyers.