Affordable Housing Fund to be available to banks, too: NHB chief

Union Budget 2018: Arun Jaitley proposes setting up affordable housing fund

(G.N.S) Dt. 01 New Delhi Union Finance Minister in his budget speed said that there will be 51 lakh houses built in rural areas by end of FY18-19. In rural areas the target is to construct 51 lakh affordable units. While providing assistance to construct 37 lakh houses in urban areas will take care of the urban housing woes, financial assistance (Rs.2.04 lakh crore) to 99 smart cities will ease the pressure on the existing urban centers.

"While the announcement of the affordable housing fund and increase in allocation towards infrastructure have brought the much-needed hope for the real estate sector, the lack of inclusion of announcements relating to lowering of GST and bringing stamp duty under the ambit of GST has been highly discouraging". Now that the government has created significant enablers to increase demand and create favorable conditions, we should hopefully see a significant spike in new launches and supply in the coming days in the affordable housing segment.

Managing Director SARE Homes, Vineet Relia on Thursday said that Union Budget has brought in some relaxation for the housing sector. The Budget addressed the anomaly under Section 43 CA to tax real estate transactions at their real value rather than the value arrived at by applying artificially higher circle rates.

He said that for this goal the Prime Minister Awas Yojana has been launched in rural and urban areas of the country.

Chairman and Managing Director of Sunteck Realty Limited, Kamal Khetan said, "The Budget has focused on initiatives to drive the economic growth and social welfare".

The 2017 budget had proposed to assign infrastructure status to affordable housing projects and facilitate higher investments. Many feel that upgradation of infrastructure like expansion and development of railways and roads will also benefit real estate. Many developers are expecting that the emphasis of the budget on the rural part will also help them indirectly.

"Announcement of dedicated affordable housing for priority sector fund is encouraging".

The government's determined focus to make real estate as one of its key drivers has been amply evident in the last couple of years.

Besides the dedicated affordable housing fund, the fact that differentials between market value and circle rates for properties (upto 5 per cent) will not be adjusted, will also help the demand for housing, felt Anshuman Magazine, chairman, India and South East Asia, CBRE.

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