As expected the first budget from PM Modi emphasized on affordable housing, improving infrastructure, and reviving buyers’ sentiments. Tax rebates like increase in housing loan exemption from INR 1.5 lakhs to INR 2 lakhs will encourage property seekers to finalize their pending property decision. Also, the tax exemption limit under 80C has been increased from INR 1 to INR 1.5 lakhs. The principal amount paid for home loans is part of 80C and this additional INR 50K stimulus will help increase the individual savings and thereby, release the much needed liquidity in the market.
With the government’s increased emphasis on developing infrastructure in Tier 2 cities, the giants of the realty industry will also eye the new developing cities. Projects like metro rail for tier 2 cities, setting up of new airports, new industrial towns, and improvements to national and state highways would help the realty industry prosper in these cities.
All the initiatives taken to develop the infrastructure will have a direct impact on the realty sector.
We are glad that the recent consumer sentiment survey conducted by IndiaProperty.com captured most of the initiatives announced today.