Union Finance Minister Nirmala Sitharaman recently unveiled the much-awaited ‘never seen before’ budget 2021-22. It is the first paperless union budget with a slew of measures for various sectors and a special emphasis on health and real estate sector. Additionally, allocation of Rs 54,581 crore is also announced for the Ministry of Housing and Urban Affairs in the Budget 2021.
Property experts at Modi Builders, top builders in Hyderabad, have shared what they think were the hits and misses of Union Budget 2021 for the realty sector.
Affordable housing, tax deduction on home loan interest, debt financing for real estate investment trusts (REITs) and boost to infrastructure in this current budget are expected to be highly beneficial for the realty segment. For the rental housing projects, tax exemptions were also announced and the government laid emphasis on providing affordable rental housing for migrant workers.
“As predicted, affordable housing and rental housing witnessed a great boost with the finance ministry announcing to extend the time period for deduction of the home loan interest. This will surely do wonders for the realty sector. It will generate more demand for affordable housing in 2021 as well. The major focus on infrastructure and capital expenditure will ensure the overall growth of the realty sector,” said a property analyst at Modi Builders, one of the leading real estate developers in Hyderabad offering affordable houses at prime locations of the city.
Industry experts believe that the additional deduction of interest on loans borrowed for affordable housing will compensate the time lost due to the pandemic.
As the budget was announced, shares of many real estate companies soared. Phoenix surged 7.1 per cent to Rs 801 on the BSE. Indiabulls Real Estate increased by 5.71 per cent to Rs 78.70. Prestige Estates increased by 4.57 per cent to Rs 279.20. Godrej Properties, Oberoi Realty and Sobha also soared 3 per cent each.