Union Budget Reaction – Gaurav Gupta, Director, Omkar Realtors

New Delhi, February 02, 2017: Finance Minister impetus on housing for all by 2022 by way of given affordable housing an infrastructure status is indeed a welcome step and will bring in the momentum towards achieving the goal. The allotment of infrastructure status would also boost investment from private players in the affordable housing campaign. Capital gains on joint development agreement to be taxed only at product launch, 1 year tax exemption from national rental income from unsold inventory and reduction of long term capital gains tax period from 3 to 2 years provide respite to investors/ developers of real estate. This helps especially those holding real estate inventory/ stock. This is a great move to providing tax relief to developers in the residential sector. Also with banks having surplus cash to lend to the home loan seekers, doubling the lending target to Rs 2.44 lakh crore will bring in more buyers to invest in real estate. Finally better re-financing of housing loans will further give a push to the affordable housing and real estate sector at large.