Finance Minister Arun Jaitley presented the 2018-2019 budget on Thursday. This budget was majorly focussed on farmers and agriculture. But there is a lot to cheer about in real estate sector too. This budget seems balanced with a focus on affordable housing. But the real estate experts also say that there this budget of 2018 will not impact the real estate sector directly as there were expectations of concessional GST from the budget and it was not met. As for real estate market in Navi Mumbai goes, the sector is continuing a good run due to better developments in the area. The budget does not ease out the issues of people willing to buy property in Navi Mumbai.
Here are some highlights from the real estate sector
- The budget looks biased towards agriculture health and education. The real estate was not spoken in the budget as much as it was expected. There was a massive disappointment as concessional GST, stamp duty regularization or change in the capital gain window on REIT did not get covered. There were no changes in income tax slabs too.
- The goal of the government which attributes to housing for all by 2022, the government is planning to build one crore houses under Pradhan Mantri Awas Yojana. There would be a dedicated housing fund under the NHB for priority sector lending.
- There would be a standard deduction to the salaried group of people which has come as a breather to the buyers. This would undoubtedly help better real estate investment. Digitized transactions are one more aspect which would provide more transparency in the Indian Real Estate Industry. It will bring in fair play for real estate sector players who look forward to being organized and also will curb frauds.
- The demand for real estate will escalate as there would be a facility of ease of credit for affordable homes. The housing sector will see a better future with the most coveted Smart City initiative which is a step in the right direction.
- Buyers and sellers of the property have tax relief as the property will be valued up to 5% below the circle rates. This is for calculation of stamp duty and capital gains tax.
- Most of the real estate expert says that this move will bridge the gap between circle rates and market rates.
Overall, it was not a significant budget for real estate sector which is seeking industry status for a long. Still, there are some small but efficient changes which may create a positive vibe among the investors. We look forward to the year ahead with a lot of expectations.