The Union Budget 2014-15 has ensured that issues like lack of institutional funding, complex tax framework, lengthy approval processes, and slow pace of infrastructural development will be looked at properly,which will boost the real estate development in the country. A number of initiatives like the additional tax exemption on housing loan interest for self-occupied homes, raised to Rs 2 lakh from the present rate of Rs 1.5 lakh, are commendable and this will make it an interesting proposition for buyers, investors, and developers.
The metro cities will benefit with a decrease in built-up area for FDI in real estate. The initiative to allocate funds for aiding the development of 100 new smart cities is laudable. This will have a positive impact on the real estate sector, as developers will be able to offer new projects in the new cities which would boost the social and economic infrastructure in the region and create new jobs.
"The government's vision to provide 'housing for all by 2022' through new measures announced in Union Budget like allocation of funds for National Housing Bank, setting up a mission on low-cost affordable housing, inclusion of slum development in the list of CSR activities, will help in promoting development of affordable housing in the country. Extending additional tax incentives by increasing the interest deduction to Rs 2 lakh will help more people, especially the young working class population, in buying houses and this could trigger renewed interest in the real estate market