Budget 2019: Real Estate Outlook



The doyens of real estate share their thoughts and reactions on the measures announced by the Finance Minister Nirmala Sitaraman for the real estate sector in the Union Budget 2019.

Finance budget would provide further boost to the housing sector: Dr Niranjan Hiranandani

www.newsbarons.comIt is for the first time in probably the last 30 years that the Union Finance budget has taken care of probably all the sector in such a detailed manner.

Right from agriculture, infrastructure, education to even minor sector like fisheries and Bamboo cultivation, the union finance minister, Nirmala Sitaraman in her maiden speech has ensured that every sector is adequately taken care of.

The government’s idea to provide affordable housing will be a possibility and is highly successful in almost all the cities except Mumbai where there is a paucity of land. I believe that the additional incentive of Rs 1.5 lakh on interest on loans borrowed under the affordable housing would give a boost to the real estate sector further.

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Affordable Housing to benefit: Anuj Puri, Anarock

www.newsbarons.comOverall, Union Budget 2019-20 is a balanced one with more of a long-term vision as a follow-on of the Interim Budget. It has obviously been formulated to restore confidence in the India growth story as a whole, and more importantly within India Inc.

As far as real estate is concerned, the budget had a few hits and several misses. Infrastructure stayed at the top of the government’s agenda. This is of course significant, since infra development is one of the main propellers for economic growth and real estate benefits both directly and indirectly.

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Key focus on affordable housing, liquidity and infrastructure: Ramesh Nair, JLL India

www.newsbarons.comWith an objective to help buyers in the affordable and m id-housing segments, an additional exemption of Rs 1.5 lakh on interest paid on housing loan, over and above the existing Rs 2 lakh, has been provided for properties up to Rs 45 lakh. Considering that a majority of homebuyers fall in the lower and mid-income segments, this tax benefit will boost demand substantially. This will significantly benefit first time home buyers who will enjoy the benefits of interest subvention under the CLSS scheme and the announced tax benefits. With effective interest coming down, it will increase the eligibility for the mid-income housing segments.

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Budget 2019 focused on the nation’s growth: Surendra Hiranandani, House of Hiranandani

www.newsbarons.comThe Union Budget 2019 has focused on the nation’s growth and brings a positive sentiment to the overall economy. With its focus on the agricultural and rural sector, infrastructure, education, job creation, digital economy etc, it is a budget for all. India’s real estate sector has a reason to cheer as Finance Minister has announced a range of sops for real estate developers as well as homebuyers in the Budget. These measures are expected to boost housing sector as well as investor sentiments in the near future and will provide ample opportunities for the home buyers to invest. On many fronts, this is a favorable and bold budget for the real estate industry. A massive boost for infrastructure will not only benefit the realty sector but also help other industries and create large scale employment in the economy. The government’s focus on infrastructure development of tier 2 and 3 cities will surely make these cities ready for next round of urbanization.

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The finance minister has made an attempt to de-bottleneck issues surrounding real estate: Kamal Khetan, Sunteck Realty

www.newsbarons.comThe finance minister has made an attempt to de-bottleneck issues surrounding real estate – both from the buyer side as well as financing side for developers. In order to meet the housing for all by 2020, there is a direct intervention through exempting additional interest deduction of Rs. 1.5 lakh for home buyers under the affordable housing sector.

Whereas, sticking to fiscal path consolidation will result in a low-interest rate for home ownership for everyone and at the same time promise to look at tenancy law is an encouraging step for multiple homeowners. On financing side for developers, recapitalization of PSU banks and support to securitization for NBFC assets will definitely be helpful in providing liquidity and credit flow to developers.

The liquidity crisis of NBFC was given due diligence in Budget: Amit Wadhwani, SECCPL

www.newsbarons.comThe Union Budget of 2019, presented by Finance Minister Nirmala Sitharaman has given clarity on various issues faced, especially by the real estate sector. India is committed to becoming a $ three trillion economy by this year itself with a focus on the development of heavy investment in infrastructure, digital economy and job creation. The liquidity crisis of NBFC was given due diligence in this edition of the Budget, with the Government allowing FII’s and FPI’s to invest in their debt papers alongside a one-time, six-month partial credit of INR 1 lakh crore to PSB’s for the purchase of high-rated NBFC assets. This shall be a positive step in resolving the liquidity crisis faced by NBFC’s in the recent past and will help ensure the revival of lending activity, as well as ensure the sustained flow of capital for them. The other 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 Mantri Awas Yojna. Also, reformation of rental laws, the introduction of newer amenities and deductions in the home loans for affordable housing sector will boost NRI investment in the sector. With this, the government aims to convince the fence-sitters back into the market to narrow the gap between supply and demand. The Government has also empowered RBI to regulate the Housing Finance Companies (HFC’s) which will help in quality assessment by the lender for fear of facing scrutiny if found indulging in improper practices. 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.

Government has aimed at an inclusive and all round development of the sector: Manju Yagnik, Nahar Group and Vice President NAREDCO, Maharashtra

www.newsbarons.comThe government today kept true to its words to work on the principles of “ perform, reform and transform” the country, and the 2019 Budget has set the ball rolling for us all. The decision made by the government of providing public sector enterprises for developments will definitely help solve problems related to land acquisition.

Under the PMAY scheme, as much as 1.95 crore houses are now proposed to be provided to eligible beneficiaries. Shifting their focus towards rental housing, the current rental laws are also going under a change that will prove itself to be fair to the lesser and the lessee. There are multiple initiatives introduced for women that should encourage them to be the next active homebuyers, expanding the buyer universe and reducing dependency for women.

To encourage NRI investment, the NRI portfolio scheme route is to be merged with foreign portfolio investment route which will drastically improve the cash flow in the economy and boost the luxury housing sector whilst clearing unsold inventories. Along with investments, taxation relief of up to Rs 3.5 lakh on interest paid will be provided to those purchasing affordable houses which brings in respite for the buyer and aids the affordable sector which only depicts that government has aimed at an inclusive and all round development of the sector.

Budget inclined and focused towards affordable housing: Gaurav Gupta, Omkar Realtors

The first Union Budget announced under the re-elected government was inclined and focused towards affordable housing. Additional exemption in income tax on home loans under affordable housing by 1.5 lakhs for homes upto 45 lakhs is a good step by the Government. This will encourage more and more fence sitters and first-time home buyers to take quick decisions regarding property purchase. It’s a welcome move and we are hopeful that the customers and investors will show interest in the affordable housing sector. This move is expected to result in some momentum in the beleaguered real estate sector.

Budget announcement good for the growth of economy: Parveen Jain, NAREDCO & Tulip Infratech

www.newsBarons.comThe Budget announcement today is good with a major boost for Affordable Housing, Rental Housing and Infrastructure development which shall be beneficial for the buyers, investors, people looking for staying on rent and the developers of Affordable Housing.

There is good News with the proposal of Tax Holiday for developers of Affordable Housing and additional deduction of up to Rs. 1.5 lacs for interest on home loans borrowed up to 31.3.2020. That takes the total deduction to upto Rs 3.5 lacs. Rental Laws shall be reformed and modern tenancy law shall be shared with states to promote rental housing which shall streamline and boost the unorganized rental market.

Major emphasis has been laid on Infrastructure development with the proposal of 100 lakh crore investment for infrastructure in the next five years. These investments include Housing, Farm and Railways infrastructure. There is a proposition to construct 1.95 crore Houses under PMAY ( Pradhan Mantri Awas Yojna) and Rs 80,250 crore for upgradation of roads under PM Gram sadak yojna. There is a proposal to follow PPP model (Public private partnership) model for the development of Railways, this move shall culminate in spreading the Railway network to remote areas making them accessible and resulting in the development of Infrastructure and Real estate in these areas. The proposal to boost water and road transport shall pit the Rural urban divide due to improved connectivity.

Considering the above major points in particular for the Real estate and Infrastructure, the Budget announcement seems to be good for the growth and development of the same and for the Economy of the nation.’