Given the focus on training and boosting the employability of the youth, we are hopeful that the real estate and construction will also benefit with employable manpower finding its way into the sector.
The sanctity and prudence generated in the overall economy, on the back of continuous reforms over the last three years were expected to deliver a business environment that was conducive, opening up the economy for large hearted schemes. As RICS, we expect that the Real Estate and Construction sector, which suffered the maximum brunt of some of these reforms, is now expected to grow significantly in light of the changes that these schemes and reforms intended. RERA and the Benami transactions act have already resulted in wider semblance in the market on the back of increased transparency.
While this has been an interim budget, it has been heartening that the real estate sector, in particular, will see the silver lining. Affordable housing continues to get an impetus with benefits under Sec 80(i)BA being extended for one additional year, for housing projects approved till the end of 2019-2020. RICS is also encouraged with the focus extended to the promotion of rental housing, with the TDS threshold on rental income raised from INR 1.8 to INR 2.4 lakhs. Homebuyers will also benefit from the rollover of capital tax gains being extended to investment in two residential houses, for an individual having capital gains up to INR 2 crores.
It is also heartening to see the continued focus on infrastructure development, with new regions being brought under the ambit of railway connectivity and India now being the fastest highway developer in the world, ensuring there is wider motorable connectivity. We also have something to look forward to from the Union Budget, post the 2019 general elections, given the intent of the Government to reduce the incidence of GST on homebuyers.
This budget has not just been the farmer and youth-friendly, but also housing and homeowner friendly. Given the focus on training and boosting the employability of the youth, we are hopeful that the real estate and construction will also benefit with employable manpower finding its way into the sector.
[This is an authored article by Nimish Gupta, MD South Asia at RICS. All views, opinions and expressions are personal and limited to the author.]