New Delhi: Terming today’s Budget proposals as positive for the real estate sector, industry players said that tax sops for first home buyers and incentives on development of affordable housing projects will help revive demand in the sluggish property market.
Some of them, however, rued that their demand to provide industry and infrastructure status to the realty sector was not considered.
The Budget 2016-17 has proposed an additional Rs. 50,000 deduction on interest on loans for first home buyers and 100 per cent deduction for profit on development of affordable housing, besides exempting REITs from dividend distribution tax.
“It is overall a very positive budget for the real estate sector and CREDAI is certain that this will spur the market and induce the home buyer who has been waiting ever since for some special incentive to actually be able to buy a house,” realtors’ apex body CREDAI President Getamber Anand said.
The Finance Minister has taken the right steps to boost housing sector and ensure that ‘Housing for All by 2022’ becomes reality, he added.
Commenting on the budget, India’s largest realty firm DLF CEO Rajeev Talwar said: “Very good budget for real estate. Tax incentives have been given to first home buyers as well as development of housing projects. This will boost both housing demand and supply significantly. 90 per cent of the housing demand is in affordable segment”.
Tata Housing MD & CEO Brotin Banerjee said “additional exemption of Rs. 50,000 for houses under Rs. 50 lakhs will help bring in first buyers to the market…We may see a lot of traction in the affordable housing space”.
JLL India Chairman and Country Head Anuj Puri said the additional deduction of Rs. 50,000 would mostly benefit first time home buyers in tier-III and tier-II cities.
The Real Estate Investment Trusts (REITs) could become a reality now after the exemption of dividend distribution tax (DDT) on such business trusts, he added.
NAREDCO President Parveen Jain said tax incentives given to first home buyers will boost depressed housing sector.
Anshuman Magazine, CMD of CBRE South Asia, said: The most encouraging announcement has been the exemption of REITs from DDT.
“Although more could have been done to revive housing demand in the country, the Government has extended incentives on various fronts, especially for the affordable housing”.
Cushman & Wakefield India MD Sanjay Dutt said the Union Budget has placed greater thrust on affordable housing and has brought about a much-needed cheer for the real estate sector.
“The finance minister’s announcement of 100% deduction in tax from profits of affordable housing developers would increase their focus on the segment that has been largely ignored owing to business viability issues,” he added.
Sobha Ltd Vice Chairman and MD J C Sharma said the tax sops would “perk up the market sentiments”.
Knight Frank India CMD Shishir Baijal said the housing sector will get a push from both supply and demand side from this year budget.
“This year’s union budget has been encouraging for the housing finance sector and the overall economy. The proposal to introduce 100 per cent deduction to undertakings for construction of affordable housing will help us in realising ‘Housing for all by 2022’ scheme,” DHFL CMD Kapil Wadhawan said.
CREDAI-NCR President Manoj Gaur said it is clear that government is keen to give a boost to affordable housing.
Amrapali MD Anil Sharma said the supply of affordable housing projects would go up in tier II and III cities, checking price rise.
“This budget scores 8/10 in the affordable housing and Housing for All initiative which is still relatively new and unexplored segment,” said Navin Raheja, CMD Raheja Developers.
Expressing disappointment, Supertech Chaimran R K Arora said the only significant relief announced in the Budget for real estate, is exemption of Rs. 50,000 to first home buyers for loan up to Rs. 35 lakh and that too on houses costing up to Rs.50 lakh.
Realty portal PropTiger Chief Business Officer Ankur Dhawan said: “There are quite a few sops given to affordable housing and first time buyers.”
Housing.com CEO Jason Kothari said: “Considering the liquidity issues and the subdued demand in the real estate sector over the last couple of years, we hoped for more from the union budget this year.”
“It is very heartening to see how the government has started recognising ‘Affordable Housing’ as a separate vertical,” Signature Global Chairman Pradeep Aggarwal said.
“Exemptions provided on Housing loan interest for first time home buyers and affordable housing is really appreciating move,” said Aman Nagar, Director, Paras Buildtech.
“We sincerely applaud the decisions made to boost the sector specially for affordable category,” K V Developers Director Aman Agarwal said.
Anuj Goel, ED, KDP Infrastucture said the exemptions on home loan interest rates for first time buyers and for affordable housing will optimize the homebuyer sentiments.
DMG Information Country Head Tej Kapoor said: “Not much to cheer about but good to see that government has introduced an additional deduction of Rs. 50,000 in the Budget proposal”.
Rattan Hawelia, Chairman, Hawelia Group, said the increase in limit of exemption of home loan interest for first time home buyers is surely a positive move.
Rishabh Group CMD Sanjeev Jain said the long pending demand of single window clearance and giving industry status has not been addressed.