2021-02-02
Hindustan Times - Developers welcome Budget announcements on affordable housing
Developers welcome Budget announcements on affordable housing. By Hindustan Times
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The
affordable housing segment, which has witnessed robust sales during the
last two years, is likely to get a further boost in the city due to the
announcements made in the Union Budget 2021-22 regarding the extension
of tax holiday for affordable housing and relief on home loans for
buyers, said city-based developers
The
state government has already increased the area available for
development of affordable housing in residential sectors and to make it
more feasible. The area norms for projects have also been tweaked. There
are around 80 affordable housing projects on the ground in city alone,
which account for around 40,000 apartments in various stages of
construction.
The finance minister, Nirmala Sitharaman, on Monday extended the period for extra deduction of ₹1.5
lakh available for loans up to March 31, 2022. The government has also
extended the time limit for availing tax holiday on affordable projects
up to March 31, 2022. She has also announced tax holiday for affordable
rental housing projects.
Santosh Agarwal, executive director,
AlphaCorp, said that the measures announced by government will provide
impetus to housing demand and encourage buyers to invest in real estate.
“Emphasis on infrastructure is good but the long-standing demand for a
single-window clearance and industry status are still to see the light
of the day,” he said.
Realty
experts said that almost half of the property bookings witnessed in the
city were of affordable housing projects and plots sales under Deen
Dayal Antodaya Yojana(DDAY) scheme. “The government by announcing tax
sops has made its intentions clear that it wants to push affordable
housing further. The state government has also eased norms and this will
help in boosting demand,” said Pankaj Singh, a real estate dealer.
Pradeep
Aggarwal, chairman, Signature Global, a city-based affordable housing
developer, expects the demand to increase in the city in the coming
months. “The response to affordable projects was good even after the
lockdown. The sops announced by government will help all the
stakeholders,” he said.
While developers and dealers were upbeat
about future prospects, the buyers want the builders to stick to the
timelines for completing projects. “ I have bought a property in Sector
70 and the builder has completed only 10 percent work despite repeated
directions from authorities. This should not happen,” said a buyer, who
wished anonymity.