Business Today

Budget will provide a boost to housing, construction and real estate industry: Rajeev Talwar, DLF

The Budget also provided relief to first-home buyers. It has raised the exemption limit for re-payment of interest on home loans up to Rs 35 lakh (for houses costing less than Rs 50 lakh) from Rs 2 lakh to Rs 2.5 lakh.

Rajeev Talwar        Last Updated: March 2, 2016  | 21:03 IST
Rajeev Talwar, Co-CEO, DLF

1. 90 per cent of the demand in the sector is in the "Affordable Housing" segment. By providing 100 per cent tax exemption on profits in this segment, the Finance Minister has virtually given it infrastructure status, which will enable developers to re-plough funds into a larger number of Projects. This will give a boost to construction; a multiplier effect on various industries that 'make in India' and supply to this sector; and to huge generation of employment. Development of housing of 30 square meters to 60 square meters is undertaken by all developers in the form of housing for community service providers.

2. The Budget has also provided relief to first-home buyers. It has raised the exemption limit for re-payment of interest on home loans up to Rs 35 lakh (for houses costing less than Rs 50 lakh) from Rs 2 lakh to Rs 2.5 lakh. This will again raise demand for middle class housing and by the younger generation planning to make their first investment in homes. This should increase development of projects in peripheral areas of cities and satellite cities.

3. Development of housing stock in all urban and rural areas should get a big boost by another provision of the Budget. The increase of exemption (on rent paid by tenants of small housing) from Rs 25,000 to Rs 60,000 per annum should encourage property owners to make a much larger number of one or two bedroom sets for purposes of leasing.

4. Exemption of DDT (Dividend Distribution Tax) on REITs and IInvTs, if we have understood the Budget announcement correctly, will fulfill expectations of FIIs who have expressed strong intentions to invest into completed and leased assets. This should also lead to inflow of funds into prospective REITs and IInvTs.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close