Budget Bonanza: Real estate sector shining
Source: Economic Times.
The Union Budget, may not have done wonders for the real estate developers but has certainly proved to be a blessing in disguise for the industry with both the movers (builders) and shakers (buyers) sounding equally enthusiastic about it. To explore this Budget bonanza which the real estate sector is about to witness, Times Property takes a look at the new tax breaks on spending and investment avenues of the potential home buyers. A city based young couple, which together fetches an annual income of Rs 10 lakh per annum sound really enthusiastic about the entire tax break provision. Shikha, who works in a bank herself is happy about the fact that her additional spending power would not only make her feel liberated to shop but also help them save better for the prospective property that she and her husband will soon be buying in the Hazratganj area. She expands, “Rishi, my husband and I had zeroed down on a house last year itself, but since we didn’t have the paying capacity then, we decided not to indulge in the house buying, while now since its an absolute wow situation as we have more disposable income, we surely can fulfil this dream of ours.” On the same note, Niranjan Hiranandani, Director, Hiranandani Constructions, believes that those thinking of buying a 1 BHK can now plan for a 2BHK flat through this increased affordability. This will specially help those in the income bracket of Rs 2.5 to 2.9 lakh, he says. While, Assem Vivek, Branch Head HDFC Home Loans, adds, “Certainly the budget which directly didn’t affect the realty market is going to move it in totality. Since the tax bracket has changed for both men and women, at an average a person with 30 percent bracket would save Rs 40,000 more.” He further expands, “Real estate has always witnessed growth and this rate sensitive industry which now to a common man assures no further hiking of interest rate is surely a treat to the potential buyers and of course the investors.” Gaurav Agarwal, Fortuna Builders (P) Ltd opines, “In my opinion the budget has not done any particular wonders to the realty sector yet the tax break sounds like a boon to the middle income group. It certainly provides them a possibility of better housing facilities.” Rahul Agarwal, Tirath Builders adding his views to the same avers, “The budget on the large has not been pro-realty , as no special mentions were made in its regard. Though like all would agree, the tax break would benefit, though only the upper middle class segment.” He also adds that it’s not just going to be the budget which will affect real estate in the coming months but largely the very buoyant stock market. For sure all this upheaval will inject a sudden competitiveness amongst the builders especially the so called branded builders and the local Lucknow builders and to meet the same competition, some new selling concepts would have to be floated.
The Union Budget, may not have done wonders for the real estate developers but has certainly proved to be a blessing in disguise for the industry with both the movers (builders) and shakers (buyers) sounding equally enthusiastic about it. To explore this Budget bonanza which the real estate sector is about to witness, Times Property takes a look at the new tax breaks on spending and investment avenues of the potential home buyers. A city based young couple, which together fetches an annual income of Rs 10 lakh per annum sound really enthusiastic about the entire tax break provision. Shikha, who works in a bank herself is happy about the fact that her additional spending power would not only make her feel liberated to shop but also help them save better for the prospective property that she and her husband will soon be buying in the Hazratganj area. She expands, “Rishi, my husband and I had zeroed down on a house last year itself, but since we didn’t have the paying capacity then, we decided not to indulge in the house buying, while now since its an absolute wow situation as we have more disposable income, we surely can fulfil this dream of ours.” On the same note, Niranjan Hiranandani, Director, Hiranandani Constructions, believes that those thinking of buying a 1 BHK can now plan for a 2BHK flat through this increased affordability. This will specially help those in the income bracket of Rs 2.5 to 2.9 lakh, he says. While, Assem Vivek, Branch Head HDFC Home Loans, adds, “Certainly the budget which directly didn’t affect the realty market is going to move it in totality. Since the tax bracket has changed for both men and women, at an average a person with 30 percent bracket would save Rs 40,000 more.” He further expands, “Real estate has always witnessed growth and this rate sensitive industry which now to a common man assures no further hiking of interest rate is surely a treat to the potential buyers and of course the investors.” Gaurav Agarwal, Fortuna Builders (P) Ltd opines, “In my opinion the budget has not done any particular wonders to the realty sector yet the tax break sounds like a boon to the middle income group. It certainly provides them a possibility of better housing facilities.” Rahul Agarwal, Tirath Builders adding his views to the same avers, “The budget on the large has not been pro-realty , as no special mentions were made in its regard. Though like all would agree, the tax break would benefit, though only the upper middle class segment.” He also adds that it’s not just going to be the budget which will affect real estate in the coming months but largely the very buoyant stock market. For sure all this upheaval will inject a sudden competitiveness amongst the builders especially the so called branded builders and the local Lucknow builders and to meet the same competition, some new selling concepts would have to be floated.
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