Potential home buyers, developers and realty fund managers all had something to smile about in the budget which displayed the Government’s intent to give impetus to the housing sector.

While some welcomed the proposal for increase in interest exemption of ₹50,000 for a loan availed on self-occupied house property, others were enthused by the possible increase in affordable housing supply bringing them closer to their dream of finally being able to buy a home.

“If an increase in supply of affordable housing and finance availability come together through a combination of increase in personal income tax exemption and interest exemption on home loan as proposed by the Government, then people can think about buying a house,” said home buyer Dipesh Jain.

The industry on the other hand was excited about the relaxation of FDI norms for real estateand expressed hope that these moves would help the sector tide over its concern of a liquidity crunch. “The Government has sent a loud and clear message that the Government is serious about encouraging realty sector in fulfilling the vision of housing for all by 2022,” said Boman Irani, Chairman and Managing Director of Rustomjee Developers.

Meera Siva, BL Research Bureau, adds

The higher home loan interest deduction limit and the increased 80C deduction limit for the principal payment should bring cheer to home buyers. Still, there are reasons why home buyers should not be overly exuberant.

The much awaited real estate regulatory bill still remains a distant hope. The aim of the bill was to create more builder accountability and better protection for buyers. Also the bill proposed speedy grievance redress – an important factor for many aggrieved buyers who are locked in prolonged disputes with developers.

With real estate being a State subject, getting a buy-in for any regulatory authority is not expected to be an easy job. Still, to paraphrase the Finance Minister, slow decision-making results in a loss of opportunity.

Likewise, the much talked about push for higher transparency, by way of a single window clearance, did not get a mention either. The measure would have also reduced inordinate delays, which hit buyers in two ways. One, they end up footing the cost escalations faced by developers, as it is usually passed on to them; also the total interest payment on their home loan is higher as hand-over is delayed.

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