What’s in the budget for real estate sector?
The Union budget announced by the finance minister Nirmala Sitharaman on February 1, 2021 has been a ‘mixed bag’ for all the sectors. Although it cannot be termed as a full-fledged budget, it has certainly provided reliefs to few business segments. Real Estate Sector is one of the vital sectors in employment generation and contribution to economy. As we all know, Food, clothing and shelter are the basic necessities of a human being, ‘shelter’ has been looked upon in core ways in the budget.
As the industries suffered under the shadow of pandemic, real estate was not behind. However, the last quarter of the year saw some buying activity in the real estate market. The foremost allotment in the budget for real estate was for affordable housing. Finance Minister emphasized on ‘Housing for All’ with few new projects and tax rebates on affordable housing. This came as welcome move for affordable segment.
The second point was tax reduction on home loan interests and debt financing on Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (IITs). The boost to infrastructure has been an advantage to the sector considering the relation. Finance minister has mentioned that a total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities. She said that two new technologies of MetroLite and MetroNeo will be prove catalyst to provide metro rail systems at lesser cost, comfort and security in Tier 2 cities.
The funding for work of all the planned metro has been provided in the budget which also includes Nagpur Metro Rail budget at a cost of Rs 5, 976 crores.Finance Minister announced that nearly 217 projects of Rs 1 lakhs crore to be completed under the National Infrastructure Pipeline. Nani’s Buildcon is confident that infrastructure will complement the real estate of market of Nagpur while looking for affordable housing projects.