RICS applauds Budget 2017 for its affordable housing and infra push – Sachin Sandhir, Global Managing Director-Emerging Business, RICS

~~ Affordable housing to be given infrastructure status~~

~~ Tax free profit for 5 years for affordable housing~~

~~ “Housing for all” gets uplift. Pradhan Mantri Awas Yojana gets Rs 23,000 crore ~~

~~ Massive infrastructure outlay pegged at over Rs 3,90,000 crore ~~

New Delhi, February 01, 2017: “The Budget 2017 broadly focussed on the rural economy, infrastructure, affordable housing, employment, digital economy and fiscal discipline. We believe that it is a fairly balanced Budget. The decision to invest in rural areas, infrastructure and poverty alleviation whilst maintaining fiscal consolidation is to be applauded.”

Real estate:

“The Budget, has partially addressed one of our long-standing demands of granting infrastructure status to the real estate sector by announcing infrastructure status for affordable housing sector. Needless to say this will incentivise real estate developers to focus on affordable housing which is where the maximum demand for homes lies. An industry status will help developers in accessing capital at lower costs. The announcement to abolish Foreign Investment Promotion Board will make it easier to get foreign funding through the automatic routes. Tax free profit for five years for affordable housing developers will give more time to builders to finish projects. The government has redefined “affordable housing”, which is important in a country like India with varied markets. We are glad the government has recognised this with its announcement that it will count carpet area of 30 and 60 sq meters for affordable housing instead of built up area. The limit of 30 sq meters applies only in municipal cities of four metropolitan cities and in the rest of the cities the limit is 60 sq meters, which will increase housing size by 30%. This will encourage developers to build affordable homes.

Real estate developers holding large amounts of real estate inventory will get some respite with the reduction of long term capital gains tax period to two years from the erstwhile three years. The government’s announcement to build 1 crore houses for the poor by 2019 along with the allocation of Rs 23,000 crore for Pradhan Mantri Awas Yojana will bring the country closer to realising “Housing for All” mission by 2022.”

Infrastructure and construction:

Infrastructure is a priority for this government. We have seen this reflected in this year’s Budget as well. The allocation for infrastructure is substantial at over Rs 3,90,000 crore. It has provided Rs 2.41 lakh crore for transport sector, including railways, road and shipping. Allocation for national highways has been stepped up to Rs 64,000 crore from Rs 57,676 crore. Higher investment in infrastructure is much needed and will spur economic growth.

Corporate Comm India(CCI Newswire)