Besides doing the much required ?clean-up? act, Budget 2017-18 gives major boost to the affordable housing and infrastructure sectors. The fact that Affordable Housing has been given the infrastructure status is commendable and will go a long way in fulfilling the Housing for All by 2022 vision of the government. Additionally, by making the carpet area for low cost housing equivalent to the previous built-up area is a step in the right direction which will attract not just builders but also the buyers as they get more spacious homes.

Further, NHB allocation to refinance individual loans worth Rs 20,000 crore in new fiscal is another advantage to the affordable housing.

The government?s move to lower the tax limit for people in the Rs 2.5 to Rs 5 lakh salary slab by 5 per cent will encourage more young buyers to take the plunge since there will be more disposable income at their hands. This coupled with recent lowering of interest rates will further infuse positive sentiments in the sector at large.
Additionally, the move to tax capital gains on JDs upon completion of the project, which was earlier ambiguous, will bring in more clarity and avoid litigation with the department.

In addition to improving the existing infrastructure across the country, the significant increase in the allocation of funds to this sector will also help in the development of new industrial cities in and around the industrial transport corridors.

Inching towards greater transparency and professionalism within the realty sector, the move to curb cash transactions above Rs 3 lakh will be a major relief for several domestic as well as NRI home buyers.
- Jaffer Ali, Founder and CEO, PropUrban