Union Budget 2017: Live Updates

Feb 3, 2017 @ 11:30

Budget reaction from Mudhit Gupta, CMD, EMGEE Group

"The budget 2017 is an extremely positive budget aimed at giving benefits to the masses and weeding out unaccounted cash from the system. In the real estate sector, the thrust has clearly been on the affordable housing sector. Giving infrastructure status to affordable housing is a game changer. This will reduce the borrowing costs substantially with much lower interest rates, it will not only open doors for investments from abroad but also increasing the lending threshold by the banks since now they will be able to fund the purchase of land as well. This benefit will be passed to the home buyers thus reducing the cost of the homes in this sector. By increasing the tax-free limit from 2.50 lacs to 5 lacs, it will increase the number of people filing tax returns thus increasing the universe of home buyers for loans. Also, the extension of the tax exemption to developers of affordable housing from the current 3 years to 5 years will further incentivise more developers to enter into this segment."

Feb 1, 2017 @ 15:30

Budget reaction from Rahul Shah, CEO, Sumer Group

In Arun Jaitley's speech on Budget 2017-18, one of the much needed changes in the real estate sector was that the affordable housing will be given infrastructure status which is likely to result in increased participation from private players like us. The allotment of infrastructure status would boost investment from private players in the affordable housing campaign. It's a good move by the government.  Real estate Investment Trusts (REITs) will open ways for the realty sector to get easy funding and ensure timely completion of projects. From our perspective, it would be beneficial if home buyers can come under the lowest possible slab of the GST, thereby, enabling greater affordability for potential home buyers.

Feb 2, 2017 @ 10:30

Budget reaction from Ashudeep Batra- ED, Exotica Housing

This was quite exciting for affordable housing as it has been given industry status and sufficient time of five years to complete. Tax relaxation to salaried is also good but first time home buyers could not get any space. Reduction in Income tax limit for basic slab will help widen the tax and reduction in interest rates by banks, is to be expected to promote push in the affordable housing market. Still we feel a bigger segment is been deprived from relaxations and policy overhaul.

Feb 1, 2017 @ 15:30

Budget reaction from Anil Pharande, Chairman, Pharande Spaces

Project completion timelines for affordable residential projects have now been increased to five years, which comes as a relief to developers of such housing as it will allow them more time to sell their inventory.
The Budget has focused on improving rural connectivity through higher kilometers road construction per day. Also, railway stations redevelopment has received a shot in the arm, with 27 stations to be allocated in the current year. This will help connect more areas and create new development corridors. It has also announced that the PPP mode will be used for select Tier-II airports, and a relaxation of AAI Act for commercial usage of land. The Government will also announce a metro rail policy for implementation and financing of such projects, which will generate additional employment and therefore interest in home purchasing.
With five tourism zones to be established via Special Purpose Vehicles (SPVs), we will see an increase in tourism to the focus areas, with a direct boost to hospitality. It will also increase appetite for second-home investors focused on the tourism-related rental income in these areas.
The Government has announced that 250 proposals for electronic manufacturing worth 1.2 lakh crore have rolled in. Obviously, this has a direct potential correlation to employment generation and therefore demand for housing in and around the identified manufacturing nodes.

Feb 1, 2017 @ 15:30

Budget reaction from Kishor Pate, CMD, Amit Enterprises Housing Ltd

The Budget has announced that 1 crore rural houses will be created by 2019, and the outlay for rural housing under PMAY is Rs 23,000 crore from the previous Rs 15,000 crore. This will help address the housing needs of the homeless and those living in kachha houses in the rural areas, and potentially help reduce pressure on urban areas if it is in conjunction with employment generation. The total allocation for infrastructure is a whopping Rs. 3,96,135 crore in 2017-18. This is very good news for the real estate sector, as the correlation of infrastructure with real estate growth is a well-established fact.

Affordable housing has finally been given infrastructure status. This will mean cheaper loans for developers of budget housing and significantly boost the Government's target of Housing for All by 2022. The Affordable housing has seen a significant change in the Government's existing scheme, with the qualifying size requirements now changed from built-up area to carpet area of 30 sq mt and 60 sq mt for projects within the municipal limits of four cities.

On the all-important front of personal income tax, the existing tax rate for incomes between Rs 2.5 lakh to Rs 5 lakh has been reduced to five per cent, and taxpayers in other categories will also save Rs 12,500. While this will definitely boost the overall consumption story, it unfortunately will not have any significant impact on housing demand. However, the FM did indicate that lending rates are likely to come down in the wake of the demonetisation move. A decline in interest rates would have positive implications on housing demand.

Feb 1, 2017 @ 15:30

Budget reaction from R K Arora, Chairman, Supertech Ltd

The budget for financial year 2017-18 has the potential to give much needed impetus to affordable housing in the country. The Real Estate Developer community appreciates that the Government is serious in achieving the objective of Housing for All by 2022, which is evident from the grant of Infrastructure Status to affordable housing. The other positive steps to revive the real estate in the Budget are additional refinance of Rs. 20000 crores through NHB. This is good news for both developers and investors in real estate projects. Further, the permission to complete Affordable Housing Projects in 5 years instead of 3 years to qualify for Tax exemption in 80IB is a relief. The new Credit Linked Subsidy Scheme for Middle Income Group with allocation of Rs. 1000 crores in the Budget will also revive the demand. The benefit to individual taxpayers by raising exemption limit and slab restructuring benefit would also boost purchasing power and demand. The relief in capital gains tax on real estate properties announced in the Budget is a welcome step as it would help enhance investment as well as demand in real estate sector. The reduction in fiscal deficit is indicative of a bright economy.

Feb 1, 2017 @ 13:00

#Budget2017: GST Rollout Likely Within Deadline

Feb 1, 2017 @ 12:58

Union Budget 2017-18

No major changes in existing indirect tax structure because of rollout of GST on the set deadline.

Feb 1, 2017 @ 12:57

#Budget2017: Some Modifications To Tax Slabs, India's Salaried Class Were Looking For More

Feb 1, 2017 @ 12:53

Union Budget 2017-18

Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore

Feb 1, 2017 @ 12:50

Existing rate of taxation for individual assees between the income Rs 2.5 lakh to Rs 5 lakh has been reduced to 5% from earlier 10%.