With the new status, developers stand to receive tax benefits, subsidies and gain access to institutional funding and land specially released for affordable housing in prime locations

- Navin Makhija, Managing Director, The Wadhwa Group Navin Makhija, Managing Director, The Wadhwa Group, on the Union Budget 2017-18: The Union Budget 2017-18 has struck the right chord keeping the long-term objectives in mind, and we believe that it will bring positive improvements and lead to a progressive growth in the real estate sector, particularly affordable housing. The government has successfully managed to address the housing needs of millions by increasing the allocated amount to the affordable housing to Rs 23,000 crore, and we look forward to capitalising on this. This move will certainly boost the sector and make affordable housing a reality. Moreover, the decision by the Finance Minister to grant infrastructure status to affordable housing will incentivise developers to construct more budget homes. With the new status, developers stand to receive tax benefits, subsidies and gain access to institutional funding and land specially released for affordable housing in prime locations. This move will result in the increased supply of homes in this category. Developers will also be able to secure faster clearances and funds for expansion plans and various projects. The infra status grant is a win-win situation, for both, buyers and developers. Affordable housing now becomes a priority lending sector for banks resulting in easier and lower funding for home buyers. We expect that there will be faster project execution and stringent payment methods will increase transparency and bring much-needed credibility to the sector.