The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units.
According to David Walker, Executive Director, SARE Home, "The announcement of National Housing Bank (NHB) setting up a Urban Housing Fund, tax sops for first housing loan of Rs 25 lakh and provision of an additional Rs 1 lakh rebate in addition to the existing Rs 1.5 lakh rebate will help to revive the demand for housing stock.
The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units. Provision of Rs 6,000 crores in the rural areas would certainly result in more permanent constructions.
The budget move to levy 1% TDS on properties above Rs 50 lakh would prove to be a major burden for both developers as well as customers especially in the metropolitan cities like Delhi and Mumbai and their outskirts as even small apartments in these areas cost more. High interest rates and soaring land prices have been the major resistance factors in reviving the demand for housing stock and the budget could have announced a few long term steps aimed at improving the supply of land and reducing interest rates."
No comments:
Post a Comment