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The Finance Minister delivered this government's fifth Budget amid subdued economic growth, challenging fiscal situation and farm distress. What makes it all the more important is the upcoming election in eight states this year and the General Election in 2019. Alike every sector, real estate which has the second largest employer in India was expecting higher attention. Budget 2018 brought little cheer for the sector.
The Finance Minister in his budget speech said, the government will establish a dedicated Affordable Housing Fund in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the government. The announcements for the affordable housing sector have pleased the real estate sector.
Mr Ssumit Berry, Managing Director, BDI Group, said "We welcome the Union Budget 2018-19 presented by FM Arun Jaitley with emphasis given to the affordable sector. The announcement of establishing dedicated affordable housing fund has brought more relaxation to the affordable housing sector not only this the benefit of increasing coverage under PMAY is also a positive news for the end users"
Mr. Gaurav Mittal, MD, CHD Developers Ltd, said; The Finance Minister presented the Union Budget 2018, we welcome the budget. It has paved growth path for the affordable housing segment. Finance Minister announced of establishing dedicated affordable housing fund is an announcement at right direction aims to meet the overall housing target of the government of building 1 crore houses by 2019. Expanding of coverage under Pradhan Mantri Awas Yojna (PMAY) will fulfill every buyer’s dream of owning housing.
Mr. Vineet Relia, Managing Director, SARE Homes; The Union budget brings some relaxation for the housing sector. The 1 cr houses to be built under Pradhan Mantri Awas Yojna (PMAY) and establishment of a dedicated affordable housing fund will act as a booster for affordable housing sector. Besides, the announcement of allotting Rs 2.4 lakh crore for 99 smart cities, will increase the investments in the sector. However, lowering of GST rates was also expected to provide the extra push to the sector.
The Finance Minister, Arun Jaitley has said that as many as 99 cities were selected under the ambitious Smart city mission at an outlay of Rs 2.04 lakh crore. Smart Cities Mission is one of the ambitious initiatives of the Narendra-Modi led National Democratic Alliance (NDA)
Mr. Pushpender Singh, Managing Director – JMS Buildtech Pvt.Ltd. said ; As Real Estate makes pivotal contribution to the economy, the fall in the GST rate in budget 2018-19 would have provided the extra boost to the sector. However, investment of 2.4 lakh crore for 99 smart cities will attract more investments into the market which will uplift the commercial reality and increase the demand for office spaces.
The industry is, however, disappointed with no changes in income tax slabs or GST slabs, translating to no extra benefit to new home buyers especially in metro markets; the sector hopes that the next budget will bring good news next year.
Mr. Rahul Singla, Director Mapsko Group, said Finance Minister Arun Jaitley presented his Budget for the year 2018-19 in Parliament. The budget is largely focused on uplift of the affordable houses in the country. For next year, we expect a budget which will open a plethora of opportunities for real estate sector especially for ready-to-move-in which will help in the overall development of the country.
Mr Ravish Kapoor, Director, Elan Group, said; "Budget 2018-2019 was the last Budget before the upcoming lok sabha elections. Last year many reforms like RERA and GST were introduced to the sector, for this year budget we were expecting some more new reforms, but the Indian Government has not given much reasons for the realty sector to smile. In next year budget we expect more for the real estate sector.”