Union Budget 2020: Housing is one of the severely impacted sectors amid rising NPAs and a slowing economy. It is, therefore, likely that the Modi government would announce some measures to heal the ailing sector at the Budget 2020. Finance Minister Nirmala Sitharaman would be presenting the budget for the year today.
The finance ministry is likely to focus on providing certain tax benefits to affordable housing. In the previous budget, Finance Minister Sitharaman provided Rs 1.5 lakh tax exemption to affordable houses bought under Rs 45 lakh. However, homebuyers would want this exemption limit to be raised to Rs 75 lakh since an individual cannot buy an affordable house under Rs 45 lakh in metros such as Delhi and Mumbai.
FULL COVERAGE:Union Budget 2020
The second half of 2019 did not bring good news to the residential real estate sector in India. This is likely to impact the first half of 2020 as well. A total of 2.61 lakh housing units were sold in 2019 across the top seven cities, according to property consultant Anarock. Out of that 56 per cent were sold in the first half, while sales plummeted to 22 per cent in the second half. When it comes to the supply front, 2.37 lakh units were released in 2019, out of which 1.4 lakh units were launched in the first half and 97,000 in the second. However, commercial or office real estate boomed in 2019 and is likely to further bloom in 2020.
The Finance Minister has been meeting stakeholders in the run-up to the Budget 2020. She held meetings and consulted experts on ways to revive the economy. Prime Minister Narendra Modi also held high-profile meetings, including one with the who's who of India Inc to discuss the state of the economy.
All eyes are on the Modi government and FM Sitharaman who are expected to announce a slew of measures to revive the economy and boost consumption. The government would also aim to put more disposable income in the hands of the middle class.