Budget 2013 and Realty Sector

The country's real estate players are hoping that the finance minister's budget provisions, to be announced on February 28, will bring down the costs of finance for the construction sector, which they insist will play a major role in offering lower rates for their product.

Lalit Kumar Jain, national president of the Confederation of Real Estate Developers' Associations of India (Credai), said the finance minister should allow tax exemption for inputs used in construction of small houses, of under 60 sq m carpet area. Special housing zones on the lines of Special Economic Zones could also be created, with tax exemptions for constructing 45 sq m houses for low income groups and 30 sq m houses for the economically weaker sections, Jain said.

The expectation from this budget session is that the real estate regulator bill be passed. “Giving the real estate sector industry status will allow real estate firms to raise capitals at much lower rates.

To give boost to the affordable housing, the Union Ministry of Housing has decided to ask the Finance Ministry to give infrastructure status to the segment in the upcoming Budget.

“In order to create more affordable housing stock, we have decided to ask the Finance Ministry to give infrastructure status to affordable housing segment in this Budget,” Union Minister for Housing and Poverty Alleviation Ajay Maken told reporters here today on the sidelines of a CII event.