The Union Budget 2019 has made certain provisions that will enable home buyers and real estate developers to benefit from it.
What has been given?
- The Union Budget has provided tax benefits to the home buyers.
- Interest deduction up to ?3.5 lakh for affordable housing (priced at ?45 lakh) has been made available now.
- It was ?2 lakh earlier. The new deduction will be available till March 31, 2020, and is expected to attract first-time homebuyers.
- The Budget also has plans to launch a Study in India program that will attract foreign students in higher education.
- This is expected to create more demand for student housing in the country.
- It is also expected that the liquidity issues of realtors will be addressed.
- Real estate developers may benefit as the liquidity problem through a recapitalization of PSU banks and support to securitization for NBFC assets.
- This will improve the liquidity and credit flow to cash-strapped developers.
- Affordable housing under the PMAY scheme has got a boost and it will benefit people in rural and urban India.
What it lacks?
Industry insiders while welcoming the budget have stated that the budget has failed to properly address the most pressing demands of the consumers and the investors by denying the much sought after “industry status” to the housing industry. This leaves the taxes insufficiently moderated and the Budget has steered clear of any land reform.