Finance Minister Arun Jaitely has announced Budget 2018, as after the RERA & GST Real Estate sector was among the most affected industry in India. Before the roll out of Budget 2018, the government of India has made a survey with reference to economic development with help of Real Estate which reported that 15 million jobs w-ould be created by the realty & construction sector by the year 2022.
The Indian Real Estate Sector sees Union Budget 2018 more focused & balanced one with affordable housing announcement has pleased everyone. Affordable housing continues to be the main focus of the government in the Real Estate sector. Also government of India has announce to set up an dedicated Affordable Housing Fun-d (AHF) in National Housing Bank (NHB).
Major Highlights made in Union Budget 2018:
1) NHB, an apex financial institution for housing will setup a dedicated Affordable Housing Fund (AHF) that would invest wholly in the affordable housing segment. This fund would obtain capital from priority sector lending shortfall and fully serviced bonds authorized by the Government of India. Under the ‘Housing for all by 2022’ government has set a target to build 1 crore houses by 2019.
2)For property transactions, no modification while taxing income from capital gains will be made in case where the variation is not more than the 5 % of the ready reckoner or circle rate. This would help in reducing the time and cumbersomeness of real estate transactions.
3) Regarding smart cities, the government has so far completed work amounting to Rs 2,235 crore. Smart City mission aims to enhanced livability and holistic development of many Tier 2 and Tier 3 cities .A total of 99 smart cities have been selected at an of Rs 2.04 lakh crore.
4)This budget has focused highly on the infrastructure development. In terms road, Bharatmala road has already given approval of Rs 5.35 lakh crore. In rail, 600 major railway stations will be developed. Also, expansion of Mumbai transport system and suburban network of Bangalore is focused, hence driving the real estate market of these cities. In terms of air connectivity, 56 unserved airports will be connected through UDAN.
With Budget 2018, there were many expectations from the Real Estate players such as lower GST on affordable houses, tax incentives & many more which has yet not turned into reality as of now. But it is expected that government has made these decision keeping in mind the great future of Real Estate Sector. Also it is expected that these moves will help government achieve its fiscal deficit target, GDP growth target & target of being one of the most developed economy in world.