Developers welcome Budget announcements on affordable housing

The affordable housing segment, which has witnessed robust sales during the last two years, is likely to get a further boost in the city due to the announcements made in the Union Budget 2021-22 regarding the extension of tax holiday for affordable housing and relief on home loans for buyers, said city-based developers

The affordable housing segment, which has witnessed robust sales during the last two years, is likely to get a further boost in the city due to the announcements made in the Union Budget 2021-22 regarding the extension of tax holiday for affordable housing and relief on home loans for buyers, said city-based developers.

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The state government has already increased the area available for development of affordable housing in residential sectors and to make it more feasible. The area norms for projects have also been tweaked. There are around 80 affordable housing projects on the ground in city alone, which account for around 40,000 apartments in various stages of construction.

The finance minister, Nirmala Sitharaman, on Monday extended the period for extra deduction of ₹1.5 lakh available for loans up to March 31, 2022. The government has also extended the time limit for availing tax holiday on affordable projects up to March 31, 2022. She has also announced tax holiday for affordable rental housing projects.

Santosh Agarwal, executive director, AlphaCorp, said that the measures announced by government will provide impetus to housing demand and encourage buyers to invest in real estate. “Emphasis on infrastructure is good but the long-standing demand for a single-window clearance and industry status are still to see the light of the day,” he said.

Realty experts said that almost half of the property bookings witnessed in the city were of affordable housing projects and plots sales under Deen Dayal Antodaya Yojana(DDAY) scheme. “The government by announcing tax sops has made its intentions clear that it wants to push affordable housing further. The state government has also eased norms and this will help in boosting demand,” said Pankaj Singh, a real estate dealer.

Pradeep Aggarwal, chairman, Signature Global, a city-based affordable housing developer, expects the demand to increase in the city in the coming months. “The response to affordable projects was good even after the lockdown. The sops announced by government will help all the stakeholders,” he said.

While developers and dealers were upbeat about future prospects, the buyers want the builders to stick to the timelines for completing projects. “ I have bought a property in Sector 70 and the builder has completed only 10 percent work despite repeated directions from authorities. This should not happen,” said a buyer, who wished anonymity.