The Indian real estate sector has largely welcomed the overall effect of the budget, although saying that it could have done more for the industry.
Pradeep Jain, chairman of Parsvnath Developers Ltd. told that the budget will enhance the socio-economic infrastructure of the country by giving needed emphasis to education, health and hospitality sector. The budget has, however, not fully addressed the demands of real estate industry.
The concessions given to infrastructure and housing sector in rural areas are nice. Nevertheless, a drop in duties and service tax benefits directly to consumers would have propelled the demand for realty across the country. The cutback in input cost of cement, steel etc. will certainly benefit the sector.
S. Chandra, managing director of Unitech Ltd , said told that the budget will have optimistic impact on the real estate industry. The construction costs are estimated to come down because of duty and central value-added tax reduction.
Housing sector will get an improve due to the increase in income tax exemption limit to Rs.1.5 lakh (Rs.110,000) and new tax slabs as it will increase the affordability of Equated MonthlyInstalments pertaining to new and existing housing loans.
