The budgetary allocation for the flagship of Pradhan Mantri Awas Yojana (PMAY), popularly known as ‘housing for all’ (HFA) scheme might be increased by the government. The government may allocate Rs 3,000 crore to the National Housing Bank (NHB) to provide loans to housing finance companies.
The housing ministry M Venkaiah Naidu has asked states to undertake a fresh demand survey to assess housing demand. A technical committee set up by the ministry had earlier estimated urban housing demand at nearly 1.9 crores. Sources informed that the initial reports from states have indicated the demand to be around 1.4 crores. A Ministry Official said that they will get the final estimate soon.
While a group of secretaries (GoS) dealing with health, urban development and sanitation has made the recommendation for providing more funds to NHB, housing minister M Venkaiah Naidu has sought more money for the PMAY scheme in cities and towns.
With union budget on the limit of being announced, the real estate sector has come up with a host of views and demands. 3 key expectations of the realty market, from budget 2017.
1) Clarity on REITs: Help the guidelines for the Real Estate Investment Trusts (REITs), to get the easy funding and ensure timely possession of the project for the realty sector. Tax clarity certainly helps investors and buyers, by hassle free transactions. One of the main reason for lack of funds, so delay in completion of projects.
2) Tax benefits for Home Buyers: It is major boost for realty sector. A deduction in income tax rates and stump duty will also be great measures. Another boost on tax benefits NRIs who invest in Indian properties. The central government can also reduce the stamp duty in the states/union territories where they are in power. Such a move could encourage other states to follow suit.
3) GST Law: Real Estate Sector is fervently awaiting clarity on the slabs slotted and construction market, in the Goods and Services Tax (GST) structure. Taxes should be reduced, especially for the affordable housing segment. It would be beneficial, if home buyers can come under the lowest possible slab of the GST, thereby, enabling greater affordability for prospective home buyers.