Budget 2014-15 includes several measures to spur realty sector
A number of measures have been announced by the NDA government, in Budget 2014-15, to give a boost to the realty sector and trigger a much-required turnaround.
Some of the main steps announced in that direction include Rs 7,060-crore allocation for developing 100 smart cities; reducing the size of projects eligible for FDI from 50,000 sqm to 20,000 sqm; and slashing the minimum investment limit for FDI by 50 percent.
The Budget proposals announced by Finance Minister Arun Jaitley also include an allocation of Rs 4,000 crore to low-cost housing for the urban poor via the National Housing Bank (NHB). Moreover, plans are also underway for extending incentives for housing loans; and ‘slum development’ has been made part of corporate CSR activities.
Commenting on the government’s move with regard to opening up of FDI, Getambar Anand – President of the Confederation of Real Estate Developers Association of India (Credai) – said that the proposed measure will unfold opportunities for cheaper capital for smaller projects, while also bringing about an improvement in quality and delivery of affordable housing projects.
Noting that development of low-cost and affordable housing will get a notable push from the move to relax FDI, Surbhi Arora – property advisory firm Colliers International’s Associate Director, research – said: “The reduction in built-up area and size of projects will allow mid-sized and smaller developers with good track records better access to FDI.”
Source- The Economic Times
Budget 2014, Budget 2014 Real estate, Budget 2014 Survey, finance budget 2014-15, finance minister Arun Jaitley, interim budget 2014, National Housing Bank, National Housing Bank (NHB), Prime Minister Narendra Modi, single window clearance, union budget 2014-15
