By Navin Makhija
The first budget announcement by the re-elected Government has brought some cheer to the real estate industry.
Focus on Affordable Housing
Much on the expected lines, the government has announced to continue with its thrust for Affordable Housing. The Government aims to achieve its target of Housing for All by 2022 through Pradhan Mantri Awas Yojana (PMAY). This can be reiterated from the fact that it has sanctioned 80 lakh houses under PMAY Urban and an additional 1.95 crore houses proposed to be provided under PMAY Rural.
The government has been consistent with its efforts in addressing affordable housing, be it giving infrastructure status to this segment in the previous budget to the exemption of Rs 1.5 lakh in income tax on home loans under affordable housing in this budget. This is a big move as it will benefit a broader segment of home buyers and increase demand going forward.
Addressing the NBFC crisis
Also, the support of Rs. 1 lakh crore by Government to NBFCs will help solve liquidity crisis to some extent which will indirectly help the recovery of the real estate sector.
Infrastructure Push
The Government has also focussed on a firm infrastructure push by announcing Rs 100 lakh crore investments. This will certainly boost the real estate sector and also help in employment generation.
Navin Makhija is the managing director of The Wadhwa Group.