It is difficult to consolidate the expectations but there are some major issues which need to be addressed in the Union Budget 2018 from the real estate perspective. While certain initiatives undertaken in the year 2017 have brought about a welcome change in the economy, there is still a dire need to highlight on a few initiatives that may be essential to support and benefit the Indian property sector, which is one of the largest employment generators and a chief contributor to the India GDP.
After granting the affordable housing segment with an infrastructure status, the other sectors should also be bestowed with an industry status to facilitate a smooth real estate growth. The budget should further focus on reducing the interest rate on home loans, this will nothing but help escalate demand.
The budget should also take steps to lend first-time home buyers with income tax incentives. A buyer who is investing in an affordable project for the very first time should get an incentive for at least five years; this aspect should be made clear in the upcoming Union Budget 2018. This will certainly be a first step towards delivering the objective of housing for all by 2022. This will also encourage the developer community to come up with more projects suiting the affordable segment of housing.
The budget must also focus on raising a limit on house rent deduction. The house rent allowance which a salaried person gets should be substantially deducted where salary and HRA components are higher. The government should also take necessary steps to make the land obtainable at an inexpensive cost of capital in order to encourage the development of the affordable housing sector.
(Sanjay Bhutani is CMO, Rivali Park,CCI Projects)
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.