Delhi-NCR Based Realty Developers Welcome Union Budget Announcements
Real Estate developers in Delhi NCR have largely welcomed the Union Budget announcements and said there that will be immediate benefit to the sector. Various provisions contained it he budget for roads and infrastructure will improve the real estate prospects on a macro level in the country. Here is exactly what they have to say:
Manoj Gaur, MD, Gaurs Group
With regulation of Housing Finance Companies returned from NHB to RBI, we hope that Reserve Bank of India would bring about much needed reforms for financing of real estate sector such as land, giving priority sector status to housing finance and lower cost of funding.
Prasoon Chauhan, CEO, HomeKraft, (an ATS company)
This budget has clearly shown the intent to continue and further grow the platform for affordable housing segment in India. Total interest savings of Rs 7 lakhs for home loans over a time period of 15 years is significant savings for the middle class family, and that too with bigger houses as carpet area norms have been significantly relaxed. This would lead to many developers including us launching projects in this segment as there is huge demand and supply mismatch.
Pradeep Aggarwal, Co-Founder & Chairman, Signature Global
The full Union Budget 2019 -20, presented by Finance Minister Nirmala Sitharaman continues the consistent approach towards affordable housing with more focus on increasing the carpet area, re-defining income criteria and giving infrastructure status under the Pradhan Mantri Awas Yojana. With its commitment towards affordable housing, the government aims to increase the number of beneficiaries in terms of the credit-linked subsidy scheme (CLSS).
Kaushal Jain, Director, Arihant Group
With India set to become a $3 trillion economy this year, the first Union Budget by the Modi 2.0 focus remains on Affordable Housing. Under Pradhan Mantri Awas Yojna over 80 lakh houses have been sanctioned and 1.95 crore houses proposed to be provided under PMAY Grameen by 2021 is a very positive move and will boost the affordable housing sector.
Amit Modi, Director, ABA Corp
While we appreciate that this Union Budget has empathised on affordable housing and Pradhan Mantri Awas Yojna with its proposal of 1.95 crore houses under PMAY (Grameen) by 2021, in addition to tax benefits of additional deduction of Rs 1.5 lakh, at some time we feel that the government has missed the bus when it comes to millions and millions of first time middle class buyers who were looking forward to this budget before their first real estate purchase, the fact is that even a small 1-2bhk Apartment in Tier-1 Metro cities like Delhi, Mumbai and Bangalore will cost starting Rs 50 lakhs and above and these urban buyers looking at ease of living in cities have been completely ignored in the process.
Ashish Bhutani, CEO, Bhutani Infra
Union Budget 2019-20 in terms of real estate announces to continue its consistent approach towards affordable housing. Under PMAY (Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 Lakh houses and 1.95 crore houses have been proposed to be provided under PMAY Grameen by 2021. We expected the government to meet our long awaited demand of Single Window Clearance & Industry Status so as to smoothen the process under real estate.
Pankaj Goel, Director, Express Builders
New government with the clear-cut mandate has tried to provide a further impetus to the housing sector. In budget 2019 the finance minister allowed an additional deduction of up to Rs 1, 50,000 on interest paid on home loans borrowed up to March 31, 2020, for purchase of an affordable house valued up to Rs 45 lakh. This will be in addition to the existing interest deduction of Rs 2 lakh. Among other measures announced to lift housing sectors, the Finance Minister shifted the base year for holding period to calculate long-term gains from immovable property to 2001 from 1981.
Parveen Jain, CMD, Tulip Infratech
The Budget announcement today is good with a major boost for Affordable Housing, Rental Housing and Infrastructure development which shall be beneficial for the buyers, investors, people looking for staying on rent and the developers of Affordable Housing.
Prateek Mittal, Executive Director, Sushma Group
Just like interim budget, the government in this budget also has stressed on boosting the housing segment of real estate industry by extending additional deduction of Rs 1.50 lakh on interest on loans borrowed under affordable housing. It will help millions of Indian to realize their dream of having their own house. Also, giving regulation of housing finance companies to RBI will result in improved regulations.
But, as a developer we had certain expectations from the government for this budget which have not been fulfilled which includes our demand for Industry status, single window clearance and reinstatement of Input Tax Credit in GST.
Dhiraj Jain, Director, Mahagun Group
The sector sees a ray of hope in the focus on affordable housing. The seriousness is visible as in this Budget the FM has proposed to provide nearly 1.95 crore houses under the PMAY. The target definitely is Housing for All by 2022 and it seems possible as now it takes only 114 days to complete the houses. We hope that further steps will follow that will augment this wish. The sector will also benefit from the road development that is proposed in the budget. Upgradation of roads will mean more projects near such areas leading to further growth of the sector.
Deepak Kapoor, Director, Gulshan Homz
We were expecting few things but then last time government gave a lot of things to streamline real estate. HFCs coming under RBI will also help in streamlining the financial situation. It could have been better if something should have been given to the middle class that comprises the majority of home seekers. As of now we can only expect something better in future.
Ashok Gupta, CMD, Ajnara India
The Budget is not very different from the interim Budget , the focus has been to boost infrastructure as well as affordable housing. The positive step towards under PMAY (Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 Lakh houses. Additional deduction Rs 1.5 lakh on home loans would help homebuyers to fulfil their dreams of owning a home. At the same time we would have preferred a Single Window clearance for all Real Estate Projects just like the ones extended for Movie Industry.
L C Mittal, Director, Motia Group
In this budget the government has undertaken measures to provide impetus to the affordable segment of the society to realize its target to achieve housing for all by 2022 under Pradhan Mantri Awas Yojana but have not taken any major steps to incentivize the real estate sector and to aid the developers and upper and upper middle class segment of the economy.
However, in this budget we expected the government to consider our long stalled demand of Industry Status for real estate sector but that has not been fulfilled this time also.
Parveen Aggarwal, Founder and Chairman, Signature Sattva
The Union Budget 2019 – 20 aims to achieve Housing For All -2022. The infrastructure status tag had already been given to the affordable housing in the previous budget and now under PMAY (Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 Lakh houses. Additional deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakh ensures to push the growth of affordable housing thus giving relief to buyers buying houses under this segment.
Pankaj Jain, Managing Director, Realistic Realtors
Financially sound NBFCs will continue getting funds, this looks like a positive step that can solve the financial crunch in real estate sector. Another take from this budget is the allocation for upgradation of infrastructure, roads and Metro Rail initiatives to be enhanced by encouraging PPPs and faster completion. Any infrastructural development boosts the movement of real estate and encourages investments. However, the sector was expecting few other things that could have augmented the steps taken previously by the government to regularise the sector. We still hope that some good announcements will follow soon.
Vaibhav Jain, CMD, Rise Group
After a pre-election populous Budget in February, Modi government today presented the Union Budget to boost infrastructure as well as affordable housing with major announcements made towards these segments. Additional 1.5 lakh tax relief on home loans would help homebuyers to fulfil their dreams of owning a home. However, developers were expecting Industry status for the real estate sector and single window clearance system, which aren’t addressed in the budget 2019. But overall, we are hoping that the sector would run on revival path and cheer the investors as well as developers in the sector.
Rajat Goel, Joint Managing Director, MRG World
Budget 2019-20 has given impetus to affordable housing. It aims to increase the number of beneficiaries in terms of the credit-linked subsidy scheme (CLSS).Moreover, due to the use of DBT Platform and technology, the government has announced to reduce the time taken for construction of houses 31 days to 114 days. The proposal by the government to invest Rs 100 lakh crore for infrastructure over 5 years aims to give a boom to the real estate sector.
Vikas Bhasin, CMD, Saya Group
The proposal by the government in the union budget to invest Rs 100 lakh crore for infrastructure over 5 years gives us an assurance that the real estate sector will receive the required impetus. In the budget, the government has continued its thrust for affordable housing and has benefited the lower and lower middle class segment of the society the most. Now the buyer buying an affordable home will get a relief of 3.5 lakh on interest paid will result in enhanced buying and realization of dream of owning a house.
Anupam Gupta, Director, Sales & Marketing, GBP Group
In the Union budget, the proposal by the government to invest Rs 100 lakh crore for infrastructure over 5 years will certainly boom to the real estate sector. With additional deduction of Rs 1.5 lakh on interest on loans the buyers buying house under affordable segment will now get a tax relief up to Rs 3.5 lakh on interest paid. This will help the buyers to fulfil their cherished dream of having a house.
Dhiraj Bora, Head Corp Comm, Paramount Group
The budget appeared to be a cautious effort by the government. There was nothing much to cheer about by the real estate sector. We expected a few announcements especially the ones that will help in faster completion of projects and better funding options for the developer. Though government has put emphasis on affordable housing but it did not touch upon the issue of input tax credit that will help in keeping the prices in check.
Pankaj Bansal, Director, M3M Group
The government's support to NBFC by way of one-time guarantee support is a strong step in the right direction to create the much-awaited liquidity in the sector. It will help in boosting credit growth as well as provide support to the housing sector. Further taking HFCs into RBI ambit is welcome steps towards more compliance and regulatory requirements. Government has also taken steps towards marinating liquidity in the banking sector by proposed infusion of Rs 70,000 crore equity in PSUs. Allowing an additional Rs 1.5 lakh per year of interest on affordable housing loan as a deduction will boost the real estate sector and give the benefit of about Rs 7 lakh to the individual over a period of 15 years.
Hiral Sheth, HOD, Marketing, Sheth Creators
The Government’s support to the NBFC sector will address the liquidity crisis which has spread its wings from the past year or so. Also, the reforms to promote rental housing will provide a much-needed boost in the Government’s vision of Housing for All. The allocation of Rs 100 lakh crore investments for infrastructure will eventually boost the residential and commercial markets thereby propelling the growth of the real estate industry.
Navin M Raheja, CMD, Raheja Developers Limited
The budget presented by our FM today is a very comprehensive budget. The Government has done everything possible to ensure housing for all. For the first time home buyers there cannot be a better opportunity than this.
Arjunpreet Singh Sahni, Executive Director, Solitaire Group
Budget 2019 has turned out to be a morale booster for all the stakeholders of the real estate industry with its intent to continue the ongoing infrastructure restructuring process that will give the much required boost to the development of housing projects across the country. With its provision of PSU bank recapitalisation of Rs 70000 crore to improve financing, the industry is expected to come out of the ongoing liquidity crisis situation.
Samyak Jain, Director, Siddha Group
The Union budget announced with the aim of nation’s growth will bring in a quick boost to the real estate sector as the government has decided to continue its focus in making housing more affordable for large population along with the promotion of affordable housing. The government’s imperative step on additional income tax deduction of Rupees 1.5 Lakh on interest paid on home loans benefits the home buyers will bring in the fence sitters back to the market.
Amit Raheja, CMD, Wealth Clinic
In terms of Real Estate and Housing the move towards improving the Current rental laws is a positive move. The need for such a reform is immediate, as the current mandate in rental is still unstable. Post the Infrastructure status designated to the affordable housing in the previous budget and now under PMAY (Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 Lakh houses. Additional deduction Rs 1.5 lakh on interest on loans will boost the buyer’s sentiment.