As the price of the property is rising high and the affordability of residential real estate in Delhi NCR has become the major concern. Because the Union Budget of year 2013 -14 approaches, the real estate companies in Delhi have fastened their aspiration on this budget for the reasonable housing to select in the capital city.
As per the India’s Census of 2011 -2012 report, the company faces an intense scarcity of 18.78 million residential units, most of that are in the reasonable segment. As the shortage is extremely outstanding in the Delhi NCR. The overall shortage of reasonable residential housing in the country id 20 to 25% exists in Delhi NCR as stated by the MD of Assotech group Mr. Sanjeev Srivastava.
There aren’t any reasonable regions left in Delhi NCR except than Ghaziabad and few other localities beyond it. As to achieve the affordability in Delhi there is an urgent requirement to boost tax relief to developers. The earlier income tax deduction under the section 80-IB that allowed the real estate companies to construct reasonable residential housing projects approved.
As real estate builder constructing smaller residential units of less than 1000 sq ft area, as covered from paying tax. The provision date has not extended since. Such schemes ought to reintroduce so as to encourage the real estate developer in Delhi to build reasonable housing. The single window clearance, a very important criterion for reasonable real estate in Delhi to take off, is additionally expected to be a part of the budget discussions.
Additionally it is equally necessary to help in increasing the removal income of the consumers that successively can offer an impetus to residential housing demand. As expressing the concern in this regard Mr. RK Arora the CMD of Supertech Ltd, stated that, if the session provides the tax exemption on home loan it will facilitate patrons probing for residential real estate in Delhi.
They are hoping that the Rs. 1.5 Lakh limit on home loan costs will be expected to be depreciated and would be enhanced to a minimum of Rs. 3 Lakh post this budget.
The state government has taken its first step towards making the reasonable real estate in Delhi more possible for the real estate developers. The conclusion to extend the Floor Area Ratio for the low price housing by Delhi Development Authority is one such step taken towards achieving the affordability in the city. As the state government can’t be ignorant in this regard, as they are doing their bit. For an example, the government of UP already has the separate policy for reasonable housing. What is needed is that the faster and higher implementation from the government.
Its not the sole business that has expectations from the Union Budget of 2013 -14. As patrons too have their hopes craved on this mega economic event. As the small survey was conducted to search out what lots expect from the government and they spoke to the experts of the industry to know what kind of Budget would be ideal for patrons.
Among the key issues that buyers highlighted are allocation of funds for infrastructural developments across the country, special rebates for smaller loans, low tax exemptions on housing loans and funds for EWS housing and a hike in the ceiling for subvention schemes. However, the priority common to most patrons happens to be the high interest rates of housing loans.