Finance Minister, Nirmala Sitharaman publicized the Union Budget 2019-20, the first one post the General Elections 2019. Including all parts, especially the real estate industry, were seeking answers to pro-industry announcements from the Government and more income tax incentives for home buyers. While a portion of the industry expectations have been fulfilled, others still remain deprived.
1) Concentrate on affordable housing
Advancing with the Government’s push to affordable housing section, the Finance Minister declare a sum of around 1.5 crore rural homes have thus far been developed under the Pradhan Mantri Awas Yojana. Centre additionally proposed to construct 1.95 crore reasonable homes under phase-2 of the flagship scheme between 2019 and 2022. These houses will come well equipped with amenities such as toilets, electricity and gas connection.
On the contrary, Sitharaman proposed that under Pradhan Mantri Awas Yojana – Urban, more than 81 lakh homes have been approved until this point, 26 lakh houses have been developed, and 24 lakh homes have been delivered to the recipients. As many as 47 lakh homes are currently under-construction.
2) Model tenure law to hike rental housing
Regardless of restated pleas by numerous industry stakeholders, the need of planning a Rental Housing Policy has been a long overdue demand . Fortunately, the similar has been described in Union Budget 2019-20 with the Government announcing to finalize a ‘model tenancy law’, which will characterize the connection between the renter and lessor and circulate it to the States. This move will not just give a push to rental housing across the nation but will likewise protect the interest of both tenant and landlord associations.
3) Boosting infrastructure and connectivity
In a gigantic push towards infrastructure and connectivity, the government allotted Rs 100 lakh crore to infrastructure development in the country, more than twice of what it proposed in the Interim Budget 2019. The assets will be utilized to reconstruct the National Highways Programme and upgrade railway infrastructure for better connectivity through numerous schemes such as industrial corridors, Dedicated Freight Corridor (DFC) and UDAN. The choice will unquestionably hike the real estate industry and help in initiating employment opportunities.