Real Estate Industry Excited After Union Budget
The real estate consultants and players are excited about the Union Budget 2019-20 Announcements and expect the industry will get help from the provisions of the Budget with immediate effect. Here is what they have to say:
Ramesh Nair, CEO & Country Head, JLL India
An additional exemption of Rs 1.5 lakh on interest paid on housing loan has been provided for properties up to Rs 45 lakh. Considering that a majority of homebuyers fall in the lower and mid-income segments, this tax benefit will boost demand substantially. This will significantly benefit first time home buyers.
Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
The government has announced a progressive budget which will go a long way in creation of a well-balanced and empowered economy. The Finance Minister Nirmala Sitharaman in her first ever budget presentation struck a fine balance between ease of doing business and ease of living in the country. While expressing confidence that the size of our economy will touch USD 3 trillion by end of the present financial year, she also expressed hope that we will be able to become a USD 5 trillion economy (world’s 3rdlargest) by 2024-25.
Anuj Puri, Chairman, ANAROCK Property Consultants
Overall, Union Budget 2019-20 is a balanced one with more of a long-term vision as a follow-on of the Interim Budget. It has obviously been formulated to restore confidence in the India growth story as a whole, and more importantly within India Inc.
As far as real estate is concerned, the budget had a few hits and several misses. Infrastructure stayed at the top of the government’s agenda. This is of course significant, since infra development is one of the main propellers for economic growth and real estate benefits both directly and indirectly.
The new FM had an uphill task of balancing priorities in Modi 2.0's maiden budget. Most sectors - including real estate - stridently sought concessions to kick-start stagnant consumption and investments. Steering the country out of the stranglehold of economic slowdown and creating employment were also high on the priorities list.
Shishir Baijal, Chairman & Managing Director at Knight Frank India
The new government’s first budget lays fundamental thrust on infrastructure development and affordable housing. Its attention to rental housing through creation of a model law is a welcome move and we hope this will pave way for the development of an institutional rental market in the country. The budget has also taken note of some of the key challenges of the real estate market in terms of the ongoing NBFC crisis and the tough residential market. We hope that the measures of enhancing bank funding to the NBFC sector and tax incentives around affordable housing will help the cause.
Dhruv Agarwala, Group CEO, Housing.com/Makaan.com/PropTiger.com
On the supply side, over 81 lakh houses have been sanctioned, out of which construction has been completed for 26 lakh houses under the PMAY Urban scheme and this too, shall continue to boost the market for affordable homes.
While it may seem like that there haven’t been any direct announcements to benefit the sector, the real story lies in the fine print. All the initiatives spoken of, to improve road, suburban railways and Metro connectivity; create a robust water management system; work on the Ease of Living; invest Rs 100 lakh crores in infrastructure over the next 5 years, will create more liveable cities and encourage people to invest in projects, even in peripheral areas and not overcrowd the CBDs and SBDs.
Tanuj Shori, Founder & CEO, Square Yards
The governments’ sustained push towards affordable housing is heartening. Now, the additional income tax deduction of Rs 1.5 lakh on home loans for the segment will boost demand for housing with immediate effect. Additionally, the continued intent to improve infrastructure and roads throughout the country will directly affect real estate positively across asset classes and segments. The core philosophy of improving employment by various sops and new incentives more first time buyers for homes, most of whom will be starting their searches online, translating into increased business for proptech firms.
Sameer Nayar, Founder and CEO, BuildSupply
Budget 2019 provides a much needed impetus to the construction and real-estate sector. The continued focus on Affordable housing and proposal of building nearly 1.95 crore houses under the ‘Pradhan Mantri Awas Yojana’ will benefit buyers and builders alike. Additionally, the proposed investment of INR 100 lakh crore for infrastructure over the next five years will help meet the growing needs of Indian cities that requires immediate attention under the ‘Smart Cities Programme’.
Samir Jasuja, Founder and MD, PropEquity
The announcement to provide positive triggers for affordable housing would surely give confidence to launch new projects pan-India in this segment and this further grow the segment. However, the issue of stuck projects is still a major road block for the sector to reach its true potential and govt. should have provided some policy level framework and benefits for these to be completed by other fundamentally strong developers.