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Budget 2019 Would Further Push Affordable Housing In India

We can safely forecast that upcoming budget will definitely provide new and continue with favourable affordable housing policies.

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The upcoming budget will definitely provide the right policy level ecosystem to further push and spread affordable housing in India. 

Indian government’s Housing for All policy by 2022 is largely dependent on providing affordable housing pan-India by incentivising developers and homebuyers with several schemes and benefits. 

What we have witnessed in the last five years including RERA, GST and demonetization implementations has definitely helped this segment to a large interest with several renowned developers including us to focus dedicatedly in this segment. 

Over the last few years, Indian government has provided various benefits to promote affordable housing including 'Pradhan Mantri Awas Yojana ' (PMAY) an initiative in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses. 

Apartments qualifying under the PMAY scheme, wherein, various concessional schemes of govt. like interest subvention under CLSS, concessions on GST etc. are available. Developers pass on all these benefits the customer’s basis their respective eligibility, which significantly reduces the end cost of ownership of the housing units. 

We expect these benefits to continue going ahead in this budget announcement

The sector also has lot of expectations from this budget to bring in more liquidity in the realty sector and provide conducive environment for other developers to finish stuck and stressed housing projects. In the recent past, many top developers have taken over the stuck projects from developers who were able to deliver it even after several years of delay. 

There is a very strong possibility that India may have single-window clearances for real estate projects. Taking various clearances wastes several months before developer can launch project which impacts its marketing strategies.

It is not surprising that Housing sector's contribution to the Indian GDP is expected to reach 11% by 2020 as several ancillary industries are co-dependent on growth of housing sector in India. 

Going ahead, we can safely forecast that upcoming budget will definitely provide new and continue with favourable affordable housing policies.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Tags assigned to this article:
Union budget 2019-20 affordable housing

Prasoon Chauhan

The author is CEO HomeKraft, An ATS company

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