Infra status to affordable housing

In a bid to give thrust to the real estate sector, Finance Minister Arun Jaitley announced in the Union Budget 2017-18 that the affordable housing will be given ‘infrastructure’ status. The move is likely to result in increased participation from private players.

The industry has largely welcomed it saying it will act as a catalyst to meet the objectives of ‘Housing to All by 2022’.

Jaitley also announced that National Housing Bank will refinance individual loans worth Rs 20,000 crore in 2017-18.

Among the key highlights for real estate sector in the Budget presented on Wednesday are: one crore rural houses will be created by 2019, Pradhan Mantri Awas Yojana to get Rs 23,000 crore, real estate developers to get tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed, instead of built-up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be applicable for affordable housing and holding period for capital gains tax for immovable property has been reduced from three to two years.

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