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Finance Ministers of India

Pranab Kumar Mukherjee
(1982-1985, Feb 2009-May 2009, May 2009-Continuing)

Pranab Kumar Mukherjee is a prominent leader of India National Congress. He has...
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IndiaInfoline arrow Budget arrow Industry Reactions

Budget not even mixed-bag for realty: NIREM

India Infoline News Service / 02:15 PM , Mar 01, 2011

Union Budget 2011-12 has not addressed the core issues that have been affecting the Indian real estate sector. However, enhanced housing loan limit of Rs 25 lakh for priority sector lending is a welcome move. It will definitely benefit a particular segment of home buyers as well as developers, says Director General of IDS National Institute of Real Estate Management (NIREM).


He further said that this budget also shows that though affordable housing is a concern for the Union Government, it is more concerned with LIG and lower level housing. Few of the most important core issues, according to him, that have not been touched upon in the budget are:

  • Rationalization of stamp duty,

  • Introduction of REMFs,

  • Industry status to real estate sector,

  • Availability of land at concessional rates instead of auctioning at skyrocketing prices

  • Introduction of a system of timely master/city development plans,

  • Guidelines on private participation in rural housing,

  • 80-IB renewal etc.

  • Human resource development for real estate and housing sector.

DG, NIREM, further said that while industry status brings several advantages to the sector, introduction and promotion of REMFs/REITs enables various funds such as pension funds, insurance companies etc invest in real estate assets which in turn brings liquidity.


The DG also said that special economic zones under the purview of MAT would reduce the benefits that developer used to get from SEZ. Infact, the additional benefits that SEZ offers had attracted developers but with new policy the level of attraction will reduce to some extent.


On the other hand, according to NIREM DG, enhanced priority home loan limit of Rs. 2.5 million would do no good to the tight affordable housing situation in bigger cities, though it would definitely benefit the LIG segment in general to some extent. However, interest subversion of 1% on home loan by including loans upto 15 lakh for houses that cost upto Rs 25 lakh for one year will come as a major relief to home loan borrowers from the low income group segment.''

Janta's Reaction

Posted By: SHAISHAV PATEL AHMEDABAD   |  Mar 20, 2012 04:28 PM
... WE WANT INFLATION RATE LESS,.... AGAR AISE HI RATE BADHTA RAHA TO HOW CAN A COMMON MAN CAN SURVIVE??? MEHGHAI KUM HONI CHAHIYE,,,, REGULAR USING ITEMS K RATE BHI KUM HONE CHAHIYE......... TOHI COUNTRY GROW KAREGA
Posted By: Kamal Chennai   |  Mar 17, 2012 11:58 AM
Change in Tax slab gives benefit for the ppl who are earning more than 8 lakh.
Posted By: Anjali Tawani Udaipur (raj.)   |  Mar 16, 2012 03:50 PM
govt. only know that how to hikes the prices in all sectors ,Ek aam aadmi nahi survive kar sakta,,,,,, janta jaagoooooo
Posted By: Singh is King Port Blair   |  Mar 16, 2012 01:16 PM
Bad budget. Tax limit increased only to 2 Lacs. Also service tax up by 2 percent. All prices will go up.
Posted By: M K Bhagat Bhopal   |  Mar 16, 2012 10:43 AM
It is easy to collect 100 rs from 100 person @ Rs. one each, instead of collecting Rs. 100 from one person @Rs. 100. The railway budget has increased the fare of AC and higer class where barely few people used to travel. per KM hike from 15 to 30 pc. rlw may get better revenue if general and sleeper clas also covered with hike only 5 pc per Km. sa the percentage of traveller is very high in economic class.
Posted By: himanshu joshi new delhi   |  Mar 15, 2012 08:55 AM
instead of charging excessive taxes on petrol, government should divert such taxes to those commodities which are generally used by upper middle class or upper class.
Posted By: Yash Indore   |  Mar 14, 2012 02:20 PM
Dont have too many expectations from the budget this year too..
Posted By: Guest Thane   |  Mar 13, 2012 05:48 PM
2011 budget was not upto mark for normal people
Posted By: shwetha raichur   |  Mar 07, 2011 01:25 PM
income tax exemption for womens
Posted By: rupesh jindal rania   |  Mar 01, 2011 02:25 PM
i think that this budget have not good impact on the life of normal people.there is no relief for people
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