Real estate sector as an asset class would gain as a store of value

- Getamber Anand, President, CREDAI National Getamber Anand, President, CREDAI National, on the Union Budget 2017-18: We must appreciate the fact that the government is very serious on the mission of ‘Housing for All’, and in the same light we have seen some extremely positive announcements in the Budget. The real estate industry thanks the government for understanding the need to enable efficient supply of housing stock in the country. Affordable Housing has been declared ‘Infrastructure’ with all its associated benefits. Additional refinance of Rs 20,000 crore from NHB and lower interest rates resulting from increased liquidity in the banking sector would add to the funds for the sector at lower costs to the ultimate consumer. The new Credit-Linked Subsidy Scheme for Middle Income Group with allocation of Rs 1,000 crore in the Budget for 2017-18 announced. Here too, the government has shown wisdom in making a very big effort to enable the home buyer to access cheaper capital. Long term capital gains tax benefits on housing which could be availed after three years has been brought down to two years. Real estate sector as an asset class would gain as a store of value. This is an extremely good news for real estate investors as they can book profits by paying a bare minimum income tax at the end of two years only on profits earned from sale of property. Affordable housing projects can be completed over five years instead of three years earlier to avail of 80IB and this was very necessary keeping in mind the time taken to get various permissions for real estate projects. All in all a very good budget for real estate and also for the entire nation considering that there are going to be very big spendings in infrastructure as well. This, along with real estate, will create many jobs and accelerate the manufacturing industry contributing to the ‘Make in India’ effort of the government.