By Rakesh Reddy
The real estate industry was very hopeful to receive infrastructure status this budget, however, this has been a big miss. Proposing 1.95 crore houses from FY 20-22 under PMAY may not attract many trusted players as the financing is very high as compared affordable housing segment. However, from the consumer point of view, increasing the interest deduction up to Rs 3.5 lakh for affordable housing loans for purchase of a house valued up to 45 lakh is a very encouraging move. This measure will definitely drive sales and will enhance the ability of the salaried class to invest in real estate. For middle class home buyers it brings a big relief as they could benefit upto 7 Lakhs on a loan period of 15 years. It is time to wait and see the amendments in the ‘Model Tenancy Law’ that will hopefully bring bank the investing community into the market.
The author is Director at Aparna Constructions and Estates Pvt Ltd.