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  • Affordable housing to be key growth driver for home loans

    BDI Ambaram

    With focus of the government the affordable housing segment is finally emerging as the key growth driver for the housing loans market. This has pushed the builders to be moving towards the affordable apartments in favor of the middle class pockets.

    Now with the sale of the houses costing below 30 Lakh, the home loans are also available with a sharp uptick providing interest subsidy for the affordable housing segment. According to the finance providers, with the interest subsidy under Pradhan Mantri Awas Yojana this housing segment is expected to grow at 25% .The scheme will be available until December 2017, with 4% subsidy on home loans of up to Rs 9 Lakh for the income group of Rs 12 Lakh per year, and 3% subsidy on loans of up to Rs 12 Lakh for the earner up to Rs 18 Lakh per year.

  • BDI in Line with Govt. Initiative to Boost Affordable Housing

    Green Park Affordable House Alwar

    If we talk about affordable houses, it typically denotes the housing needs of the lower or middle-income population. At present, the need for a better job opportunities and the higher living standard has resulted in increased urbanization. This has also increased demand for housing in India. People with low income are not able to fulfil the dream of owning a house.

    “To overcome this need, the state schemes along with Centre’s PMAY (Pradhan Mantri Awas Yojna) are luring developers to launch more projects in the affordable housing sector. The increased thrust given by Government of India (GoI) towards affordable housing has given wings to the home buyers’ dream of owning a house,” said Mr. Ssumit Berry, Managing Director, BDI Group.

    As per the ICRA report, the affordable housing segment is going to increase by 30% as compared to the other segment of the real estate.

    The recent budget announcement of establishing a dedicated Affordable Housing Fund (AHF) in the National Housing Bank will boost the Affordable Housing sector.

    “To bring transparency and accountability in the affordable housing segment of the real estate sector, RERA (Real Estate Regulatory Act) was introduced in the country. Its positive impact is being observed in the sector in streamlining the affordable housing segment.India entered a new era of single unified tax regime called Goods and Service Tax (GST) on July 1, 2017, which has replaced the multiple taxes, levied by the central and state governments and has subsumed of all the indirect taxes. It has eliminated the complex and ambiguous tax structure plaguing the country,” added Mr. Berry.

    In the latest report from Cushman & Wakefield, the top 8 cities witnessed residential launches of approximately 74,000 units in 2017, mainly in the affordable housing. It also registered a 35% decline.

    Prime Minister Narendra Modi’s plan of building homes for all by 2022 is set to boost the economy by $1.3 trillion, create 60 million new houses and over 2 million jobs annually.

    In nutshell, it can be said that affordable housing sector, which is also called the ‘growth engine of Indian Realty Sector’, is surely going to witness the boom in the coming months.

  • BUDGET 2018: Little cheer for real estate sector

    Budget Rectification

    Photo Courtesy: Internet

    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.”

  • Impact of GST on Real estate Sector

    Elan Miracle Sector 84 Gurgaon   Copy

    NewsMantra Bureau

    Goods and Services tax is going to be implemented from the 1st of July. GST is being considered as one of India’s most revolutionary tax-related reforms. GST will eliminate conflicting and cascading taxation structures like VAT and service charges in real estate. GST law will increase the margin in the hands of developer by eliminating the above-mentioned taxes.