Mumbai, Feb 1 : Shishir Baijal, Chairman & MD of Knight Frank India, on Friday hailed the maiden interim budget which was presented by Piyush Goyal in Parliament.
Giving reaction, Mr Baijal said overall, the Union Budget augers well for the real estate sector having addressed affordable housing, REIT and infrastructure.
Baijal said, ''The housing sector will get a push from both supply and demand side. The first time homebuyers will be encouraged since they get an additional deduction of Rs.50,000 on interest for loans up to Rs.35 lakh and a house value of Rs.50 lakh.
In effect, it will reduce the cost of loan which will boost the demand for housing in the budget to mid segment.''On the supply side, he said, 100 percent exemption of profit for developers and exemption from service tax for construction of houses less than 650 sq feet will encourage supply in the affordable housing segment.
The Knight Frank CMD added, ''REIT has finally got its due with the abolishment of the DDT that was holding back asset owners. This is a welcome move for the industry. There will be no road block in launching REIT schemes any time now. He also found the infrastructure and rural development focus in the Budget encouraging and said, ''It is expected to give the much-needed fillip to the real estate sector.''
Aman Singh Gehlot, Director, Ambience Group, said, ''The Union Budget 2016 has allowed 100 per cent deduction for profits to an undertaking from a housing project for flats up to 30 sq. metres in four metro cities and 60 sq. metres in other cities. ''This shows the Government’s commitment towards its promise to provide ‘Housing for All by 2022’.
Vishal Gupta, MD, Ashiana Housing said, ''It is a balanced Budget, it will boost affordable housing sector. The budget would promote real estate sector, especially the affordable housing.
An overall tax simplification has been provided for lot of us doing business here,'' he said, adding that this budget is going to boost the stressed housing sector, Gupta said, adding that exemptions provided on housing loan interest for first time home buyers is a great incentive to the real estate sector.
Ankur Jindal-COO, Sales, SVP Group, said, 'Housing for all' became the real estate focus of the budget today. The direct and indirect tax benefits for affordable housing should boost the government’s smart city initiative. Additional deduction of interest would incentivise the first time home buyers to buy their dream home.
Suresh Bhandari, President, ASHA 2022 by Essel Group said,''We welcome FM’s decision of exempting Rs. 50,000 on housing loans up to Rs. 35 lakh, for the houses below Rs. 50 lakh. This long awaited move will provide needed boost to the lower and middle income group who are currently subjected to a maximum deduction of Rs 2 lakh on the interest payable on ‘self-occupied’ house, under the head ‘Income from house property''
Arjunpreet Singh Sahni, ED, Solitairian Group said,''After the last two years of disappointments this Budget has definitely paved the way for increased footfalls of first time homebuyers in the market with its provision of additional deduction of Rs 50,000 on home loan interest rate on the loan upto Rs 35 lakh. Moreover, the Government’s decision of allocating Rs 1,000 crore fund for paying EPF of new employees till three-years of their service may also provide additional disposable income to the new employees which will definitely help in generating their interest in investing in property with the help of home loans. Both these provisions will definitely improve real estate market sentiments.'' (UNI)