“The Union Budget 2020 has focused on the nation’s growth and brings a positive sentiment to the overall economy. With its focus on the agricultural and rural sectors, infrastructure, education, job creation, digital economy, etc, it is a budget for all. India’s real estate sector has a reason to cheer as the Finance Minister has announced tax holiday on profits of developers involved in affordable housing projects. It will be extended by one year to March 2021 with a deduction of Rs 1,50,000 will be extended to loan sanction by one year. This measure is expected to boost the affordable housing sector as well as investor sentiments in near future and provide ample opportunities for home buyers to invest. A massive boost for infrastructure with the National Infrastructure Pipeline (NIP) captures the infrastructure vision of the country for the period FY20-25. It has projected a total infrastructure investment of Rs 102 lakh crore during FY20 to FY25., This will not only benefit the realty sector but also help other industries and create large scale employment in the economy. The government’s focus on infrastructure development of tier-2 and -3 cities will surely make these cities ready for the next round of urbanisation.
“In general, this year’s Budget is optimistic for the sector.. Enhancing the exemption limit for the general category of individual taxpayers will increase buying capacity of potential home buyer, thereby providing a boost to achieve ‘Housing for All’. We would also like to congratulate the Finance Minister for a wholesome balanced budget; we believe that the move to reduce tax rate to 10% from 20% for incomes between Rs 5 lakh to Rs 7.5 lakh is a very positive move. This is a helpful step towards increasing disposable income for a first-time buyer planning to purchase a real estate asset.
“Going forward, we expect continued momentum for Indian realty to attract new investments into the sector and hope the step taken by the government by reducing tax exemptions and National Infrastructure Pipeline (NIP) brings positive measures for the holistic growth of the real estate sector, imperative to fuel India’s growth engine.”