The expectations from the upcoming budget are multiplying as the big day is getting near. And it’s not just the developers that demand heavily (that includes the lowering of interest rates, infra status and easier external commercial borrowing (ECB) norms) but also the so called people (especially the poorer sections that the desires of a small home) who cannot personally ask from the government unlike the players of real estate.Aiming big, the UPA is formulating its plans quicker than ever. All because of the general elections scheduled next year. So the plan is to launch houses in high numbers that will cater mainly poor population. This new project is focused on improving the policies and principles of the Rajiv Awas Yojana that is responsible to provide housing for the rural population in India. And with that the new part of JNNURM (Jawaharlal Nehru National Urban Renewal Mission) will also be mandated that aims at slum rehabilitation projects and urban infrastructure upliftment.Coming back to the budget anticipations, let’s have a look on the major points that developers ask for:
- Granting infrastructure tag to the housing sector. Optimists say that this will have a positive impact on the real estate sector as this will reduce the cost of borrowing which is at present very high.
- Grating service tax exemptions for the developers that build affordable housing projects.
- Increasing tax benefits on home loans.
The developers association, CREDAI said that if all these demands are given a nod then this may be helpful in abridging the gap between people and houses. So what can we dream? Houses!