Union Budget 2019: What has real estate gained?
Finance minister Nirmala Sitharaman presented the Union Budget 2019-20 on July 5. According to Sitharaman, “Our economy was at approximately US$ 1.85 trillion when we formed the Government in 2014. Within 5 years it has reached US$ 2.7 trillion. The Indian economy will grow to become a 3 trillion dollar economy in the current year”
Here is what real estate has to say:
Ajay Piramal, Chairman, Piramal Group, “We are happy to see the government signal its confidence for a well-financed, robust NBFC sector through the one-time six-month partial credit guarantee. This development would be an important milestone for the NBFC sector that is crucial for the sustained growth of the economy. We welcome the regulations and norms that have been proposed by the Finance Minister on the NBFC sector that would raise transparency and reinstate trust in this vital sector.”
Amit Wadhwani, Co-founder, SECCPL, “The key reforms that will impact the real estate industry include the further development of the ‘Affordable Housing for All’ initiative, with a fund of 4.83 lakh crore sanctioned for the construction of 84 lakh houses under the Pradhan MantriAwasYojna. With attempts of attracting NRI investments, giving a boost to rental housing, developing major infrastructure projects, ensuring job creation and advancing economic development, the Union Budget of 2019 is a sign of positive things to come.”
“As anticipated, the Government continues to showcase its serious commitment for realising India’s housing dream which is evident from the acknowledgement of ongoing liquidity crisis in the country. From measures announced for promoting inflow if FDI to domestic market for NBFCs, encouraging PPP for providing land to formulation of rental policy – everything that we have been voicing, is looked into.” Jaxay Shah, Chairman CREDAI National
Bijay Agarwal, Managing Director, SalarpuriaSattva, “With the government allowing foreign institutional investors(FII) and foreign portfolio investments(FPI) to capitalize on their debt papers with a one-time, partial credit of Rs 1 lakh crore to public sector banks for the acquisition of high-rated NBFC assets will be a positive step in resolving the liquidity crisis faced by NBFC’s. The proposed reforms to be brought under the Model Tenancy Law is likely to enhance rental housing and increase the interest of investors, who are looking for rental income.”
“The Finance Minister, through this budget, has sought to stimulate growth by bringing in reduction in corporate tax and sops to the housing sector, electric vehicles and startups. While the Finance Minister took a measured view of the economy, she stayed away from spontaneous short-term measures, despite macro constraints.”Anurag Mathur, CEO, Savills India
Manoj Gaur, MD, Gaurs Group & Chairman, Affordable Housing Committee, CREDAI, “Union Budget 2019-20 in terms of real estate has been heartening where CREDAI’s long standing proposals to reform archaic rental laws and promote public housing on government land figure have been among the immediate policy agenda outlined by Finance Minister. Moreover, an additional deduction of Rs 1.5 lakh on interest on loans borrowed under affordable housing scheme has been announced, which means those purchasing affordable house will get tax relief up to Rs 3.5 lakh on interest paid.”
“The Union budget continues its focus in making housing more affordable for large population. The government’s imperative step on additional income tax deduction of Rupees 1.5 Lakh on interest paid on home loans benefits the home buyers will bring in the fence sitters back to the market. Further, the move taken to enhance the infrastructure and connectivity will not only favor the realty sector but also help other industries and create employment opportunities.” Samyak Jain, Director, Siddha Group.
Kaushal Jain, Director, Arihant Group, “With India set to become a $3 trillion economy this year, the first Union Budget by the Modi 2.0 focus remains on Affordable Housing. Under Pradhan MantriAwasYojna over 80 lakh houses have been sanctioned and 1.95 crore houses proposed to be provided under PMAY Grameen by 2021 is a very positive move and will boost the affordable housing sector.”
RajanBadelkar, President, NAREDCO Maharashtra on Budget 2019, “The budget by Modi 2.0 government inarguably lays forward a coveted plan structured with the ambition to achieve the “Housing for all” mission within the promised timeline. The managerial shift of the housing finance to RBI is a thoughtful move expected to address and work towards eradicating the existing liquidity crunch.”
SachchidanandRai, Chairman – Eden Realty Group, “This budget is based on the philosophy of reform, perform and transform. Naturally, the focus is more on rural economy, women, youth and infrastructure. Special sops to buyers of affordable housing units of up to 45 lacs will give boost to housing sector in the short term.”
Kishore Jain, President, CREDAI Bengaluru, “Union Finance Minister NirmalaSitharaman in her maiden Budget focused more on the infrastructure development by allocating 100 lakh crore for the next 5 years which is a commendable announcement.Merging foreign portfolio investment route with NRI portfolio investment route will bring in more investment. Overall, it sounds like a balanced budget but, the key will lie in the effective implementation of the various welfare schemes announced by the government.”