The real estate sector in the city has welcomed the interim budget presented by Piyush Goyal, finance minister on Friday stating that it has the potential to boost the sector that has been reeling since past two years with a severe liquidity crisis and a slow down in demands.
Shrikant Paranjape, president, Confederation of Real Estate Developers Associations of India (CREDAI) Pune metro said, “Some of the provisions proposed in the budget will benefit the real estate sector. Especially, the one which encourages buying a second home and exemption of tax from the rent earned from the second home.”
He added, “Moreover, for rentals up to 20,000 Tax Deducted at Source (TDS) will not be deducted, this is likely to boost the sale of affordable homes. These steps will surely encourage the middle class for buying homes.”
Rohit Gera, managing director of Gera Developments Pvt Ltd said, “The budget speech by the finance minister demonstrates the intent of the government to support the real estate sector. The extension of section 80 I B for one year is a welcome step.”
According to Gera, this initiative will boost the continued production of affordable housing in the country.
“Permitting consumers to purchase two homes out of capital gain is most welcome. An increase in the TDS threshold and the removal of notional rent on a second self-occupied home are also positives for the consumers,” he added.
Satish Magar, president-elect, CREDAI national said, “Some decision about the embargo on the sale of flats at rates lesser than the ready reckoner was expected. However, nothing came through about it so selling the flats at the rates that are lesser than ready reckoner is not possible now, this is a bit disappointing. However, certain provisions for housing are likely to help real estate.” Change in tax slabs is a big relief for the middle class, he added.
