Friday, 24 February 2017

Post Budget Review

Post Budget Review by Sam

Post the DeMO drive, our government has been focusing on making our economy policy and system based and hence following the targeted delivery approach to become more planned and professional. Very rightly said by the FM, Arun Jaitely, the positive signs and optimistic outlook of the economy are showing green shoots and the effects of DeMo are not expected to spill over in the next year. The affordable housing has been given the infrastructure status which is likely to result in improved participation from private players. Affordable housing is a priority for this Government and it was expected to get an Infra Status. With this the developers can access foreign funds at a cheaper cost. Also with the restriction of Cash Transactions to Rs. 3 Lacs, the cash component will be eradicated completely from this sector and hence making it more transparent. The sales are expected to increase in the residential market with Real estate developers getting tax relief on unsold stock. Under Real Estate Industry, Affordable housing was given major emphasis. One such related announcement was where Instead of build up area, carpet area will be counted for affordable housing. Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years is another major change in the budget.  Overall, the housing sector will gain immensely from the Budget 2017