Budget 2018 Impact on real estate
Union Budget 2018 came up with a couple of desires for the real estate sector, which is battling with credibility crisis, the impact of demonetization, administrative changes, and low intrigue, overall. While the announcement of the affordable housing fund and increase in allocation towards infrastructure have brought the much-needed hope for the real estate sector, the lack of inclusion of announcements relating to lowering of GST and bringing stamp duty under the ambit of GST has been highly discouraging.
The government’s announcement to establish a dedicated affordable housing fund in the National Housing Bank through various funding measures will give the much-needed boost to the realty sector. As part of this measure, almost 31 lakh homes are to be built in urban areas in 2018-2019 and 51 lakh in rural areas. The affordable housing sector will continue to grow in the coming years. We will see increased growth in low income/ small budget houses in tier 1 cities, and growth in housing in tier 2 and 3 cities. Consequently, the related industries in the supply chain - Steel, Iron, Cement, Construction Materials, and Transportation, will witness growth. From propfrill experts vision, it is clear that budget 2018 has totally focused on affordable house scheme and other concerns for the real estate sector are still on the same pace with no major updates or changes.