VISAKHAPATNAM: The announcements in the Union Budget proposals 2017-18 with thrust on affordable housing have been widely welcomed terming it a boost to the housing sector.
Treating affordable housing as infrastructure project is a big step forward, says Confederation of Real Estate Developers’ Associations of India Visakhapatnam chapter Chairman K. Ramakrishna Rao.
Another major demand of the real estate sector to make the 60 sq metres limit in urban areas into the carpet area fulfilled marking a significant change, says Mr. Rao.
With the bringing of affordable housing under infrastructure, funding by banks will be available and FDI will come in, says Visakhapatnam Apartment Builders’ Association President P.V.L. Narasimha Raju.
Mr. Rao says more builders will now come into affordable housing sector with funding being available.
Mr. Raju sees a major shift towards affordable housing projects by leading companies leveraging foreign funds or from financial institutions.
Tax relief
CREDAI also welcomes the change in capital gains resolving a long-pending problem. Making it payable a year after completion certificate is a big relief, says Mr. Rao.
The decision to give a big boost to affordable housing and reduction in time limit for application of capital gains would benefit the real estate sector a lot, said CII-Andhra Pradesh Chairman G.S. Shiv Kumar.
“The budget proposals were aimed at creating employment as 70 to 80 per cent workers in the country dependant on the construction industry for their livelihood,” said builder and managing director of Pavan Constructions P.V. Narasimha Rao.
