Web Exclusive | July 2014
Budget gives boost to real estate
Our Mumbai News Bureau
The Budget proposes low-cost housing for young citizens with Rs 4,000 crore; allocation of Rs 4,000 crore for affordable housing via National Housing Bank and housing for all by 2022, which will create a favourable environment that will boost affordable housing in the country. This would be beneficial for companies like Poddar Developers and Puravankara Projects among others, which operate in the low cost housing segment.
Meanwhile, plans to build 100 new cities, CSR status for slum redevelopment programmes, pass-through status to REITs, are major announcements by the Finance Minister that will strongly help in the revival of the real estate sector. In addition, survival of SEZs and creation of industrial smart cities are other welcome announcements.
Exemption for interest on housing loans has increased from Rs 1.5 lakh to Rs 2 lakh. This will give a boost to demand in the real estate sector which is suffering from low demand for the last 4-5 months. This would bring investment in rental properties. Therefore companies like DLF, Prestige Estate and Nesco, which have a substantial rental properties portfolio, can encash these properties and pay their piled up debt.