The Union Budget 2020 falls short of real estate industry expectations with no major announcement for accelerating growth in the beleaguered sector, stakeholders said on Saturday
The industry was hoping that the government will come up with measures to boost housing demand. "However, the removal of exemptions under the new income tax regime implies no tax benefit on principal and interest for home loans," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
However, the extension of benefit for affordable housing for the developers as well as home buyers by one year is a step in the right direction, he added.
ASSOCHAM President Niranjan Hiranandani said the Budget proposals seem structured for medium- to long-term results. "We do not see anything which will have an immediate impact to kick-start the economy," he said.
"In addition, the liquidity issue which is a major challenge for the economy in general and real estate in particular, here too one does not see any major relief," he added.