The real estate sector had pinned high hopes on the Budget, as the sector has been reeling under pressure and is on the verge of collapse. The Budget has only two positive proposals for the sector viz. one more year of extension for approval of affordable housing projects for availing a tax holiday and extension of additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans. But the sector’s key demands such as allowing restructuring of loans, extension of a subvention scheme, raising the limit of Rs 45 Lakh for affordable housing, scrapping of capital gains on the sale of properties, extending the timeline of capital gains, are not met with. This core sector drives demand in ancillary sectors and creates employment opportunities, too. Not addressing the key issues will worsen the future and make the going unviable. The Government can still take immediate steps to bring the sector back on the track before it is too late.
