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Union Budget 2018: Real Estate Sector Welcomes Boost to Affordable Housing

Arun Jaitley said, “My Government will also establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the Government of India.”

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Updated:February 1, 2018, 4:06 PM IST
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Union Budget 2018: Real Estate Sector Welcomes Boost to Affordable Housing
Picture for representation. (Photo: Reuters)
New Delhi: Finance Minister Arun Jaitley’s Union Budget 2018 may be a political one with major focus on agriculture and farmers, but his announcements for the affordable housing sector has pleased the real estate sector.

Jaitley said, “My Government will also establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the Government of India.”

He further said that far from the Benami properties earned by corruption, the poor only desire to have a roof, a small house by his earning of honesty. “Our Govt. is helping them so that they may fulfil the dream of their own house. We have fixed a target that every poor of this country may have his own house by 2022. For this purpose Prime Minister Awas Yojana has been launched in rural and urban areas of the country. Under Prime Minister Awas Scheme Rural, 51 lakhs houses in year 2017-18 and 51 lakh houses during 2018-19 which is more than one crore houses will be constructed exclusively in rural areas. In urban areas the assistance has been sanctioned to construct 37 lakh houses.”

Narsimha Jayakumar, Chief Business Officer, 99Acres said, “The real estate industry welcomes the initiative of setting up of a dedicated fund for affordable housing. This will help create more affordable supply as well as drive demand from genuine end-users,”

Mrinal Kumar, Partner, Shardul Amarchand Mangaldas said, “With Budget 2018, the government continues to boost the affordable housing sector by setting up an affordable housing fund under the umbrella of the Pradhan Mantri Aawas Yojna, which will give impetus to the growth of industries ancillary to the real estate sector. Further, the relaxation of income tax adjustment in case of difference of less than 5% between the circle rate and consideration for real estate acquisitions, is a welcome change.”

Jayakumar said, “The industry is, however, disappointed with no changes in income tax slabs or GST slabs, translating to no extra benefit to new home buyers especially in metro markets. Another miss is also the lack of provision of full industry status to real estate crimping flow of affordable funds.”

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| Edited by: Huma Tabassum
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