Chennai:
The real estate sector said the home buyers will continue to face increasing cost burden as there has been no recognition for single-window clearance and speedier approval processe, according to Credai national secretary and chairman and chief executive officer, Akshaya Pvt Ltd T Chitty Babu.
He said the real estate industry was looking forward to a budget that would have revived the economy if accorded infrastructure industry status.
Babu said the TDS on sale of 1 per cent on the housing industry is going to further widen demand and shortage leading to cost escalation of properties.
Gautam Mehra, executive director, PwC India, said, the road map for development of the Delhi-Mumbai and Chennai-Bengaluru industrial corridor seems to be a positive step towards developing ‘Smart’ cities. The additional tax incentive on home loan interest is welcome. Service tax increase is unlikely to negatively influence luxury homebuyers. Re-introduction of TDS provisions will upset the developer community.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India said that the budget was tepid for the Indian real estate sector.
“On the positive side, it provided a boost to affordable housing with an additional interest benefit of Rs 1 lakh on first-time home loans up to Rs 25 lakh. However, this provision is only for the first year and with a carry-forward benefit of the unutilized deduction to the second year. This will help boost housing sales in tier 2 and 3 cities and peripheral areas and distant suburbs of metros, but not within the metros, where housing is more targeted towards the mid and upper income segments.
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