The Budget presented focusses on ramping up spending on infrastructure, provides the necessary impetus to the ‘Housing for All’ programme, and continues the structural reforms initiated a couple of years ago. The agenda of Transform, Energise & Clean India shall improve the quality of governance and quality of life. The move from discretionary administration to policy based administration is visible in the budget proposals.
This has been one of the pathbreaking budgets with far-reaching changes especially for the real estate sector. It is positive that the real estate sector has come in the central spectrum of the Union Budget. This has come at a time when the beleaguered sector has been looking at measures to boost the sentiments
The Union Budget 2017-18 has now set in motion a series of structured reforms process for the housing sector in the country. The announcements made in the Finance Bill focuses on the upliftment of the urban poor and the under privileged within our cities and rural areas.
India’s leading apex body for real estate sector, National Real Estate Development Council (NAREDCO) has welcomed the provisions of the Finance Bill 2017, under which government has proposed to award infrastructure status to affordable housing segment.
Demonetisation has dealt a body blow to the economy whether we like it or not. It has delayed the uptick in the economy by a minimum of several quarters. The informal economy is in tatters and the business outlook is glum.
The Minister of Housing and Urban Poverty Alleviation, Venkaiah Naidu, recently directed the Secretary of his Ministry to immediately convene a roundtable with all developers, banks and housing finance companies to deliberate in detail as to why no private sector participation has been enlisted under Pradhan Mantri Aavas Yojana (PMAY) and found out reasons for their reluctance in the scheme.
India is on the cusp of large-scale urbanisation over the next few decades, with more than 1 crore population being added to its urban areas. It is expected that by 2050, 60 per cent of the population will be living in cities, meaning that the demand for houses will shoot up in these areas.
The year 2017 seems like the year for the affordable housing segment, and there should be no looking back for developers and the government hereon. The ´infrastructure status´ will certainly open up new financial avenues for developers.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, says: “The Union Budget 2017-18 is a much awaited one considering that it comes against the backdrop of a challenging year for the real estate industry.