The Union Budget 2017 has proved to be a winner for real estate.

union budget

Mr. Arun Jaitley, the honorable Finance Minister, has made some crucial announcements in the course of the 2017-18 Budget, which would have some critical impacts on all sectors. Here are some factors which might have a resounding impact on the real-estate sector:

  1. The allocation for the Pradhan Mantri Awas Yojana (rural) has been increased from Rs. 15,000 Crore to Rs. 23,000 Crore. The aim is to complete 1 Crore houses by 2019. This mission is expected to provide the budget housing segment with cheaper sources of finance, thus increasing employment opportunities in rural areas.
  2. The Infrastructure Status has been changed to Affordable Housing. This will thereby lead to easier lending norms, opening of the ECB route, taxation benefits and greater corporate governance in affordable housing segment.
  3. Union Budget 2017 announced that the tenure of loans under the Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana (PMAY) has been increased to 20 years, from the existing 15 years, resulting in an increase in the off-take in EWS and LIG segments under the existing Pradhan Mantri Awas Yojana.
  4. A reduction in the holding period has been made, from the existing 36 months to-the-now 24 months, to qualify as a long-term capital asset. This makes the real-estate sector a notch more attractive for investors.
  5. The carpet area would be taken into consideration henceforth, instead of the built-up area of 30 & 60 for affordable housing. This is expected to bring uniformity in the market measurement and thus, facilitate ease in decision making for the homebuyers.
  6. The base year for indexation has been shifted from 1981 to 2001 for all classes of assets including immovable property hence reducing the capital gains as the cost of acquisition of property will go up thus lowering the tax burden while selling the property.
  7. The constructed buildings which are stock-in-trade, tax on notional rental income will apply after one year after the year end after which, a completion certificate will be received, resulting in the reduction of tax burdens of the developers, and encourage to liquidate inventory at a faster rate.

Seems like a good time to buy a home, isn‘t it? Visit to choose from a plethora of residential projects in vicinity of a rapidly-growing Pune.