Vishal Gupta, MD, Ashiana Housing said the infra status given to affordable housing in the Budget would reduce cost of funds, make loans available at cheaper rates and enable developers to deliver houses at affordable prices.
Infrastructure status given to affordable in the Budget would reduce cost of funds, make loans available at cheaper rates, and enable developers to deliver houses at affordable prices, according to Vishal Gupta, MD of Ashiana Housing
To make affordable housing more viable, the FM's Budget proposal suggested changes to an earlier scheme. Instead of built-up area of 30 and 60 square meter (sq.mtr.), the carpet area of 30 and 60 sq. mtr. will be counted. Also the 30 sq.mtr. limit will apply only in case of municipal limits of 4 metropolitan cities while for the rest of the country including in the peripheral areas of metros, limit of 60 sq.mtr. will apply.
The above move will help build comfortable size houses, especially in tier II and tier III cities, said Gupta.
Increasing the time period of completion for profit-linked income tax exemption for promoters of affordable housing scheme from three to five years is also a great move and boost to the affordable housing segment.
With all the above three benefits, good quality affordable housing would be viable, said Gupta.
For full interview, watch video...