BEST TIME TO INVEST IN REAL ESTATE
The 2020 Union Budget has drawn mixed reviews across sectors and industries. The realty sector has been in choppy waters, especially post 2016 and the RERA regulations. However, the biggest challenge came in during 2018 as an aftermath of the IL&FS fiasco. But as it is said, ‘every dark cloud has a silver lining’, even in this budget, the Government has retained its focus on affordable housing. Let’s understand how:
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INCREASE IN THE SIZE OF AFFORDABLE HOUSING:
The qualifying size for affordable housing has also now been upgraded to 60 sq. meters for the rest of the country, including in the peripheral areas of metros. The 30-sq-metre limit will apply only in the case of municipal limits of four metropolitan cities. The profit-linked income tax exemption for promoters of affordable housing schemes has also been extended to five years from the earlier eligibility criteria of three years after commencement of the project.
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INFRASTRUCTURE STATUS:
Affordable Housing has been granted Infrastructure Status which will provide a boost in the volume of construction activity enabling developers operating in this segment to raise loans at a cheaper rate. This low cost of funding would help the first-time buyers get homes at more affordable rates.
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PMAY GET A BOOST:
The Government has allocated Rs 23,000 crore for the Pradhan Mantri Awas Yojna (PMAY) and proposes to accomplish one crore houses by 2019 for those living in kuccha houses.
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REDUCTION IN TAX RATE:
The reduction of income tax rate from 10% to 5% for the slab of Rs 2.50 lakhs to Rs 5.0 lakhs will mean tax savings for many individuals. This coupled with the lower interest rates will make buying homes more affordable for the consumers.
Overall, the budget has brought some good news for the consumers, who were looking forward to buying homes at affordable rates and for the affordable housing sector as well.
Bakeri Group, one of the oldest real estate developers in India, has introduced affordable housing schemes, with the aim of being able to reach out to all sectors of society. As it celebrates five decades of excellence, it reaffirms its promise to the society, of upholding its tradition of providing a comfortable customer relationship based on transparency, trust, quality, commitment and prudent business policies.
