Mayur Shah, Managing Director, Marathon Group welcomed the Union Budget 2011 for more sops towards the affordable housing by the Finance Minister. However, opined that the steps are still inadequate as far as the list of expectations from the real estate sector is concerned
Commenting on the Budget Proposals for the year 2011, Mr Shah said that the priority sector home lending up to Rs 25 lakh from the existing Rs 20 lakh, and interest subvention on housing would certainly a great step towards addressing the issue of the affordable housing by the Finance Minister Pranab Mukherjee. Similarly, the one per cent interest subvention on housing loans up to Rs 15 lakh (for homes costing an maximum of Rs 25 lakh) is expected to bring in more home buyers in the affordable segment.. However, looking at the huge demand of 28 million housing stock, much could have been done.
The real estate sector has been demanding for the ‘Infrastructure Status’ to the real estate, but the Finance Minister did not consider the same.
According to Mr Shah, real estate sector was awaiting some the restoration of 80 IB of income tax in respect of residential units measuring less than 1,500 sq ft area, and some steps to encourage rental housing scheme. However, the same were also not considered in the budget.