The Government has endeavoured to address the key issues confronting us today, with a vision for India to emerge as one of the resilient economies wake of global slowdown.

The Budget has provided a handful of positives to the real estate sector such as: 100 per cent deduction to undertakings for construction of affordable housing, removal of Dividend Distribution Tax on REITs and additional deduction of ₹50,000 on interest for loan up to ₹35 lakh to first time home buyers.

In a welcome move, the Finance Minister has given the undertakings 100 per cent exemption from taxes for profits from a housing project for flats up to 30 sq. metres in four metro cities and 60 sq. metres in other cities. The move will be a boost to the government’s attempts to expand the scope of affordable housing in the country and spur the construction activity in this segment which forms a major housing demand. The Budget has certainly brought good news for the sector with the Finance Minister addressing the long pending demand of the sector by announcing the exemption of Dividend Distribution Tax (DDT) from Real Estate Investment Trusts (REITs). The removal of this major hurdle will revive the realty sector as this makes investments attractive for developers and other asset holders.

In order to encourage the customer and to provide boost to the affordable housing segment, he proposed to give first home buyers a deduction for additional interest of ₹50,000 per annum for loans up to ₹35 lakh sanctioned during the next financial year, provided the value of the house does not exceed ₹50 lakh. The additional deduction was much awaited considering the rise in costs of housing units and this will result in improved home buying in smaller cities.

Overall, acknowledging positive announcements made in the Budget, we now look forward to real estate sector be given a preferential industry status which has been pending due for long.