Kolkata, Feb 14 (IBNS): The Union Budget 2018 is a balanced one with focus on affordable housing; but, without any direct impact on the sector, feels Laxman Jaiswal, Chairman & Managing Director,Ascon Infrastructure (India) Ltd.
The Budget seems to be heading to have minimal direct impact on the Real Estate industry.
This is a departure from the last three years. The sector grappling with the reforms-driven new order is without any meaningful interventions in the budget.
The sector was reeling for a while; and was expecting major announcements to revive it.
This from the perspective that the real estate greatly contributes by contributing 7.7 per cent to GVA, employing 15 million job creation over 5 years and the exchequer.
The setting up of a dedicated affordable housing fund under the National Housing Bank for priority sector lending will provide a further impetus to the development of housing.
The continued focus on smart city projects is expected to boost real estate activities further. Real estate is a function of multiple parameters and bearing of the overall economy. So if there is an overall boost to the economy through farm spending and so on; then we will see a spin-off effect on the real estate sector
Post demonetisation, the secondary market was turbulent due to lack liquidity, furthermore in major cities, the circle rates were increased and had become more than the market rates.
This resulted in a gap between the two rates, which was counted as income in hands of both buyer and seller.
One more positive out of Union Budget 2018 is the clear focus on pushing up farmers’ income thereby kick starting consumption in the economy.
Dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the Government of India.
Finally there should be parity between the Central and the State tax rates and regulations for the benefit of the real estate industry.
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