In this age and day, everyone wants their privacy surrounded by four walls. Imagine having your best house at a less and affordable price without any hassle. Well, the Union Budget of 2021 saw some relaxations placed in the market of Real Estate for the buyers. There are certain things the Union Budget kept in their preferences in terms of real estate while drafting the budget. Let’s articulate some points of the budget from the view of Real Estate.
During the pandemic caused by Coronavirus, the market for real estate including all sectors had fallen short of its fringe benefits. Looking forward, let us see how the budget change at this instant helps real estate and people to afford the best houses at a very reasonable price. From health to infrastructure, finance minister Nirmala Sitharamans’ third Budget speech tackled the wish list of various industries and consumers that were impacted by the COVID-19 pandemic.
Finance minister Nirmala Sitharaman during her budget speech announced an extension of the tax holiday on affordable housing projects for one more year. The affordable housing benefits have now been extended to a whole year that is up to March 31, 2022. This means the deduction benefit of rupees 1.5 lakhs under Section 80EEA will now be available for buyers who invest in an affordable housing project before March 2022.
Another benefit at present is the seller concession being made reasonably attractive for the seller to showcase the best house. Therefore to minimize hardship in real estate transactions and provide relief to the sector, the Financial Minister proposed to increase the limit from 5% to 10%.
To have your workstation in your hands, now there is an unbelievable deflation in creating your own rusty wooden space. Quite appealing as it sounds, the value of the best house does not exceed rupees 45 lacs for another year.
Better the infrastructure, more the sight of attraction. Infrastructure is now being implemented not only in Nagpur and Nashik but also in other Indian cities as stated by Devendra Fadnavis.
On the 6th of January, after reducing stamp duties in the state to boost residential sales, the Maharashtra government approved the proposal to cut construction premium by 50% on real estate projects by half till the 31st of December. This would ensure the consumers get the direct concession that the state government wants to give in the premium.
Lastly, it will provide respite to the cost burdens for the developers. Effectively, the total benefits will be much less than 50% as stated by Rohit Gera, Managing Director of Gera Developments.