The affordable housing sector is expected to grow in a big way with finance minister Arun Jaitley announcing infrastructure status for affordable dwelling units in the Union Budget. This, clubbed with a tax cut of 5 percent on those in the first slab of I-T, will make it possible for more people to own houses.
The budget proposal is seen by stake-holders as a well-meaning welfare step that would directly impact the lives of scores of people. Builders and realtors are also upbeat as more individuals will become 'credit worthy'.
The sector expects the post demonetization liquidity crunch to ease with a serious restructuring pitch by the national Housing Bank, the apex body which regulates and supervises Housing Finance Company (HFCs).
Kerala Realtors Association president Abjo Joy said the tax cut of five percent for those in the Rs 2.5-5 lakh slab will prompt more people to buy houses. The government intends to get more people to buy or own houses, he said.
The proposal to grant tax relief on unsold stock will benefit builders. The affordable housing market is huge and untapped. More players are expected to launch projects as demand for houses in the Rs 30-50 lakh bracket will go up, Abjo said.
