Putting the 'Real' back in Realty

News - February 2018

Not only has the sector welcomed a dedicated Affordable Housing Fund in the Union Budget 2018-19, but also the impetus on infrastructure, jobs and rural development will improve Ease of Living, an essential driving force for realty. Here’s a gist of how the budget can impact your life if you are an existing home-owner or a prospective home-buyer. Read on…

While the Union Budget 2018 has been termed as a populist-cum-reformist budget, the Indian real estate sector is trying to figure its key takeaways. The Union Government has allocated a dedicated fund for affordable housing under the National Housing Bank. Some strategic budgetary announcements will have a direct as well as cascading effect on real estate.


“The allocation of Rs 50 lakh crore towards infrastructure is a welcome move. Good infrastructure is the foremost requirement if we expect any kind of foreign investments. Railways have remained the backbone of transportation and their adjoining properties offer tremendous potential for development.”

urban planner and infra expert

“While a dedicated Affordable Housing Fund in National Housing Bank is a good move, much more is required. Infra investment is great but ground-level , implementation needs to be seen. A tolerance limit of 5 per cent between the stamp duty value and actual consideration while taxing income under the Income Tax Act, 1961, in respect of transactions in immovable property, are welcome moves.”

partner, Economic Laws Practice


director, Vertex Group lists a few pointers that home-buyers should pay heed to:

1. Interest rates may go up
2. Introduction of capital gain tax on mutual funds and shares will surely divert the investments to real estate. Better returns are therefore expected;
3. As the government has already pushed affordable housing, home-buyers can check how they can make the most under PMAY;
4. Real estate investment offers maximum tax benefits like Rs 2 lakh on interest, 1.50 lakh on principal plus stamp duty cost. Hence, a person earning Rs 10 lakh per annum will pay an income tax of only Rs 48000/- i.e. just Rs 4,000 pm for the first year if s/he has taken a home loan.


“The affordable housing industry is set to grow manifold. Recent statistics clearly indicate that leading brands are looking forward to foraying into affordable housing and housing finance companies are also focusing on the same. The construction quality of affordable homes is of a superior value due to the presence of skilled labour. Increased expenditure on agriculture and rural economy will, in turn, add value to affordable housing. The industry is growing by 14 to 15 per cent and a budgetary push will reinforce it further.”

MD and CEO, National Housing Bank


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