With the recent “infrastructure status’, affordable housing will help increase liquidity in the sector. Banks will be keen to extend loan to the developers for affordable housing. Realtors believe that the “infrastructure status”, which has been given to the affordable housing sector, is a win-win situation for builder and buyer alike.
- As an asset class, real estate sector would gain a lot.
- This will help increasing liquidity as banks will be keener to extend loan to developers for affordable housing.
- According to President, CREDAI-Getamber Anand, “All in all a very good budget (2017-18) for real estate and also for the entire nation considering that there are going to be very big spending in infrastructure as well. This along with real estate will create many jobs and accelerate the manufacturing industry contributing to the ‘Make in India’ effort of the government.”
- To promote affordable housing, the Finance Minister said that the scheme for profit linked income tax exemption for promoters of affordable housing will be broad based.
- Moving affordable housing to infrastructure category will help developers raise both equity and debt funding at competitive rates.
- It will bring more supply into the market and will help builders with large amount of real estate inventory.
Source: Estate Avenues