A boost for the real estate sector

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The central budget has focused on the real estate sector, especially in the affordable housing segment.

In order to encourage demand in the residential market, the Center has announced an additional deduction of Rs.15 lakhs (which is up to Rs.45 lakhs) for the interest paid on housing loans for affordable housing properties. Beyond the current deduction of 2 lakh.

In addition, in order to reduce the gap between supply and demand in the market, the Center has proposed to open parcels of land from the government and public sector companies for use in affordable housing and public infrastructure.

Lease model law will be finalized to promote real estate sector housing market and improve mental performance in the country.

The real estate sector was in trouble for a long time. To improve some basic problems, such as lack of inappropriate behavior and lack of transparency on the part of developers Center introduced much-needed reforms and changes in policies to make the area consumer-friendly.

It includes the GST (Tax on goods and services), RERA (Law of development and regulation of real estate), the amendment to the receipt of the black money and makes the REIT (real estate investment trust) financially viable.

These initiatives initially reduced the demand for residential properties. Buyers lost their confidence in the market and almost all real estate players, including people organized as Prestige Estate Properties and DLF, were defeated.

While the real estate market is on the way to recovery, since 2018, the recent crisis in the NBFC sector (primary lender for real estate players) influenced the market in the financial year 19. But better leverage companies were better.

Although some expectations have been abandoned, such as the state of the real estate infrastructure and the benefits of tax credits for inputs in GST, this time affordable housing has been constantly focused and this will benefit both buyers and developers.

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