Post-Budget Reaction by Mr. Ganesh Vasudevan, CEO

CEO-Indiaproperty-Ganesh-VasudevanThe objective of the budget was – to improve the quality of life and to pass benefits to common man. To an extent the budget has succeeded in doing so.

As expected the budget majorly focused on growth of infrastructure in the country.  But the ambiguity on the smart city project which was announced in the previous budget continues with it getting no mention in the current budget. 

Allocation of INR 70,000 crores to Infrastructure sector, tax-free bonds for projects in rail road and irrigation, revitalising the PPP model for infrastructure development – are just some of the inclusions which will help growth of infrastructure and thereby the realty industry in the country. As seen in the past infrastructure projects have proven to be seeds for the growing realty industry in India as they direct housing and commercial developments towards them. 

With Ahmedabad-Dhaulera Investment region and Shendra-Bidkin Industrial Park now ready to get basic infrastructure, one can expect an increased interest from developers in the area. 

6 crore housing units for rural and urban housing by 2022 is a positive move by the government towards fulfilling its agenda of housing for all by 2022 and filling the housing deficit in our country. Another highlight was the government’s commitment towards controlling flow of black money in the country especially in property dealings and promoting cashless transactions. The flow of funds via electronic transactions will have a high impact on the realty industry and would bring the much needed transparency in our industry. 

Even though there is a proposal to rationalise the capital gains taxes for the listings of REITs in the country, the details of the proposal were not specified during the budget. 

We believe that an increase in the buying capacity of home buyers will help recover the realty industry in India. Even though the industry was expecting some additional tax exemptions for common man, saving of up to INR 4,44,200 in a financial year will definitely motive property buyers.

© News Service

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