The government’s focus on affordable housing and rental housing is praiseworthy. The tax exemption for the same—be it on the interest payable on the housing loan for affordable housing elongated by one more year and the tax holiday for companies providing affordable housing—is a clear implication of the government’s priorities on housing for all by 2022.
As we enter 2021 with new union Budget, the notion of historic sales could slow a bit but will continue to be vital to describe a positive story. Unlike the past year, the real estate sector is now banking with home buyers willing to make a move. But in case of the affordable housing, the trends are going on the tide and show a remarkable rise in homebuyers’ interest.
There was a severe impact on the Real Estate Sector during the pandemic which sank the Indian economy in early 2020. Expectations for the sector consequently are eagerly awaited every year. Though the government has from time-to-time made important announcements to boost housing that has supported the industry. With infrastructure being propped up, we can expect better mobility of the masses, better public transport and gauge getting a remark in this year’s budget, thus reducing the current infrastructure’s stress.
These have been aided by cuts in stamp duty rates by states, such as Maharashtra, and interest rates for housing at historic lows. Keeping the government’s stated objective of Housing for All by 2022, a sub-segment that has and will need attention in the forthcoming budget is affordable housing. In this connection, it is suggested that the last date for availing the Pradhan Mantri Awas Yojana (PMAY) Credit-Linked Subsidy Scheme (CLSS) both for the MIG-I and MIG-II categories be extended to March 31, 2022, as is the case with the scheme for LIG/ EWS category. This CLSS has played an essential role in improving affordability in these categories.
Mr Yash Miglani, MD, Migsun Group, says, “The budget announcement is indeed progressive and will support the industry in several ways. The affordable homes market can take care of the housing difficulty of the citizens of the country to a large amount. The real estate industry is at the cusp of a transformation in the country. The FM’s twin declaration on rental housing and affordable housing both will contribute a lot of support to the sector. Nevertheless, the government could have done more to relieve some of the pandemic caused pains for the industry, which is sadly missing. The pandemic has bought a heavy blow to the industry and any short-term easy funding solution for the developers could have made the deal more generous.”
(Source- ET/Zee Business)
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