Budget 2013 is poised to bring some optimism for prospective home buyers, as the finance minister has indicated the inclusion of certain special provisions intended to bolster the affordable housing segment.
Anticipated Boost for Affordable Housing
It is expected that Budget 2013 will prove advantageous for the real estate sector, with the introduction of specific measures designed to stimulate progress within the housing market Nationwide. Union Finance Minister P Chidambaram has already suggested that the government intends to grant infrastructure status, specifically to the affordable housing sector.
Industry Demands
Realtors have presented numerous requests, seeking tax exemptions, reduced interest rates on loans, and decreased financing costs for the construction sector, alongside other considerations. In addition, some advocate for a Single-window clearance system to expedite the approval processes.
Furthermore, real estate stakeholders have recently called for infrastructure status to be extended to the real estate sector in its entirety, believing that such a designation would unlock various tax advantages for them.
Government Standpoint
However, Mr. Chidambaram, while addressing the appeal for infrastructure status for the whole sector, clarified that it could be granted solely to the affordable housing segment, which he regards as a sub-sector within the broader construction industry. All these considerations are crucial to the builders and real estate developers.
Impact on Home Buyers
How will this affect home buyers and what benefits can they expect from Budget 2013? In anticipation of the 2014 elections, the UPA government aims to develop more affordable homes. This strategic move is seen as part of their campaign to secure a third consecutive term in power.
Regardless of their electoral outcome, their proposed 'Rajiv Awas Yojana' initiative is expected to provide housing for a substantial number of people in need. Budget 2013 may also unveil the next phase of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for urban infrastructure projects, alongside accelerating the progress of slum rehabilitation schemes.
Industry Perspectives
According to Mr. Lalit Kumar Jain, the national Chief of the Confederation of Real Estate Developers Associations of India, granting infrastructure status would reduce real estate costs, enabling developers to offer homes at more accessible prices.
Housing and Urban Development Minister Ajay Maken has expressed his support for granting infrastructure status to the housing sector. Moreover, he has communicated with the Finance Ministry, advocating for income-tax relief and service tax exemptions for developers involved in affordable housing projects.
With these prospective reforms on the horizon, prospective home buyers are hopeful that their aspirations of owning a home will materialize once Budget 2013 is adopted.