The Union Budget 2021 is largely focused on healthcare and infrastructure, which will have a ripple effect on the development in the other sectors including real estate, said Aditya Kushwaha, CEO and Director, Axis Ecorp.
"We welcome the first digital budget presented by the Finance Minister. The budget is largely focussed on healthcare and infrastructure, which will have a ripple effect on the development in the other sectors including real estate," said Kushwaha.
The Finance Minister has also given special importance to human capital. Steps taken in this direction in conjunction with growth in infrastructure will lead to an increase in the disposable income of people which could bring a good scope for investment in real estate, he added.
"In the Annual budget for 2021 too, we can see the Government's focus on affordable housing. The deduction on payment of interest for affordable housing has been extended by a year. This move will improve customer buying behaviour," Kushwaha stated.
At the same time, to boost the investment coming via the NRI route, the taxation has been simplified which will incentivise NRIs to invest in our country as they will get a tax rebate on the rental income. This move will also give a boost to holiday homes and commercial real estate in the country, he further said.
"Furthermore, there have been relaxations offered in real estate transactions, capital gains, business profits, and rental income which in turn will uplift the real estate sector," said Kushwaha.
Meanwhile, Farshid Cooper, MD, Spenta Corporation said, a major impetus to the infrastructure and introduction of DFI or Development Financial Institution worth INR 20,000 crore is a fillip to not just to the respective sectors but also to the aligned segments such as housing.
"The pandemic had significantly impacted the construction of major infrastructure projects and stalled the housing construction for a considerable amount of time. The DFI will help fast-track the infra projects in major cities paving way for the growth of the housing sector as well. Additionally, an extension of tax exemption available for the purchase of affordable houses and affordable rental housing projects will boost the real estate sector in major cities and Tier II and III cities as well," he added.
Savills India, CEO, Anurag Mathur has also lauded the key features of the Union Budget-2021 stating, the budget has reaffirmed the government's commitment to bring back the country on a road of recovery through focused impetus on infrastructure, healthcare, inclusive development, innovation, and robust governance.
"Real estate specific announcements although few, were targeted towards affordable housing and REITs. Tax holidays and exemptions in affordable housing and debt financing for REITs are expected to strengthen the confidence of all the stakeholders in the residential and office segments," he added.
Central sponsorships of metro projects in key urban areas among other infrastructure initiatives are likely to bolster the real estate potential of specific micro-markets in these cities, said Mathur.
( With inputs from ANI )
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