he Budget 2018 was announced by the Finance Minister Arun Jaitley on 1st February. The budget’s main focus was rural areas and agriculture and was ‘development friendly’ as said by the Prime Minister Narendra Modi. Harshavardhan Neotia, Chairman, Ambuja Neotia Group and former President of FICCI, believes that increase in farmer’s income will give an ‘overall boost to the economy’ which will have an ‘effect on the real estate sector With the introduction of a unified Goods and Services Tax (GST), the stakeholders were expecting some announcements that will reduce the additional cost pressure that has been created on real estate. There were some disappointments as the Union Budget did not seem to have any impact on the sector but was seen as ‘a balanced one.’ No great changes that could affect the dynamics of the real estate sector were declared. However, with the establishment of ‘Dedicated Affordable Housing Fund’, as our finance minister Arun Jaitley calls it, in National Housing Bank, which is funded from the priority sector, there is a hope for the development of housing in the sector. The Affordable Housing Fund can allow few real estate companies to delve into affordable housing segment as a viable business opportunity, as put by Ashish Jindal, Co-Head, Real Estate, and Sanctum Wealth Management. After the demonetization, there was an absence of liquidity in the secondary market and the circle rates were higher than the market rates, resulting in the gap between the two. The Budget by giving a gap between the two by 5% can help revive secondary markets and help increase demand for housing, Ashish Jindal added. There are various parameters that impact the real estate investment. Though there is no direct incentive to the real estate sector, the experts have lauded the other initiatives in the budget which will help in increasing the investment in the real estate. Many of them were happy with the proposal of around 50 crores in upgrading infrastructure as it can help in boosting demand for the housing investment. Gaurav Gupta, General Secretary CREDAI-Ghaziabad & Director, SG Estates believes that the initiative to enhance the rural infrastructure will help to ‘boost housing demand and investment opportunities’ in the regions. Also, the reduction of taxes from 30% to 25% for companies with a turnover of around 250 crores will reduce the tax burden on the corporate and might provide many opportunities in the real estate sector. The aim of ‘housing for all’ by 2022 and also the building of smart city was appreciated by Parth Mehta, Managing Director, and Paradigm Realty. He believes that it will ‘effectively influence the demand for housing in times to come.’ Under this, around 3.7 million homes in urban areas in and 5.1 million homes in rural areas hope to be built in 2018-19. Niranjan Hiranandani, President, NAREDCO liked the Government’s move towards the Suburban Railways in Mumbai which will have ‘a positive multiplier effect on real estate.’ The Union Budget 2018 surely provides an incentive to give a lift to the rural housing and affordable housing in the urban area. Then why you are waiting for.Hurry up Godrej is coming up with new upcoming project Godrej Reflections Bangalore which offers a affordable housing with all the amenities you are looking for that to with in the budget.for more information get in touch with us or call us at 8553159202
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