India’s Real Estate had already been in a tight spot since demonetization was introduced. The price dip and intense reforms almost crippled this sector. But thanks to Finance Minister Arun Jaitley’s 5-star budget, these damages can be rolled back. Investors and real estate developers were excited to know that real estate is now an infrastructure. According to real estate experts from Arun Dev Builders Ltd, this was a long-awaited decision by the government that’ll change the face of real estate in the country.
With the infrastructure status, transparent planning and instant-approval windows will be possible. This shall jump start pending housing projects and speed up the conception of other projects. With such an easy market, the Real Estate Regulatory Authority (RERA) will attract a lot of investment in the affordable housing sector. Previously, a ‘built up area’ of 30X60 square meters was used for affordable housing. This has been changed to a 30X60 square meter ‘carpet area’. This only applies to the metro cities Delhi, Mumbai, Kolkata, and Chennai for now.
The infrastructure status will facilitate the goal of creating 1 crore affordable homes by the year 2019. Moreover, the Pradhan Mantri Awas Yojana has increased the allotment of Rs 15,000 crore for their projects to Rs 23,000 crore.
Experts from Arun Dev Builders also pointed out two major changes to complement the infrastructure status of real estate. The first happens to be a new FDI policy with which the real estate sector will have access to a lot of capital. The second change favours the future tech since the funds for AMRUT and Smart Cities have been pushed to Rs 9,000 crore.
The infrastructure status of real estate will greatly help cover the shortage of more than 1.5 crore homes in India. Relaxation in tax guidelines is set to boost business too. The more people save, the more they’ll invest in real estate. Union Budget 2017-18 was truly a budget aimed at India’s infrastructure.