Union Budget 2017-18: Revival of real estate needs continued support, says Emaar India

Sanjay Malhotra, CEO, Emaar India

"The Budget presented today focusses on ramping up spending on infrastructure, provides the necessary impetus to Housing for All program and continues the structural reforms initiated couple of years ago. The agenda of Transform, Energise & Clean India, shall improve the quality of governance & quality of life. The move from discretionary administration to policy based administration is visible in the Budget proposals.

The long-standing demand from real estate industry saw the light of the day, with affordable housing segment getting the Infrastructure status. This, along with increased allocations under NHB and PMAY-Gramin, will enable larger funding available to Home buyers & Developers, at a lower cost and also make the sector eligible for various incentives. Proposals like reduction of holding period for the purposes of long term capital gains tax from 3 years to 2 years, changing the base rate of indexation to April 1, 2001, shall provide the necessary respite to the property owners and also making property an attractive investment option.

Being one of the largest employers in the economy and contributing 6 percent of the GDP, the revival of real estate sector needs continued support with more such measures, which will also have a multiplier effect on various sectors that provide material & equipment for construction & development.