Union Budget 2017 increased allocation to Pradhan Mantri Awas Yojana from Rs. 15,000 crore to Rs. 23,000 crore in the rural areas
The real estate industry has reasons to cheer as Union Budget 2017 announced infrastructure status for affordable housing. Housing companies acknowledged the beneficial changes to the affordable housing segment as it would give a boost to housing construction for low-income groups.
Anuj Puri, Chairman and Country Head, JLL India, acknowledged the increased allocation to Pradhan Mantri Awas Yojana from Rs. 15,000 crore to Rs. 23,000 crore in the rural areas.
“This is very significant, because it will provide the vital budget housing segment with cheaper sources of finance including, but not restricted to, external commercial borrowings. Also, re-financing of housing loans by NHBs can give a leg up to the sector,” he said in a statement issued to the press.
However, Mr. Puri grudged the Budget missing out on giving any additional income tax incentives to first-time home buyers or providing higher tax savings on housing loans and house insurance premiums. The Budget did not raise house rent deduction limits as well.
A new Credit Linked Subsidy Scheme for the middle-income group with a provision of INR 1,000 crore in 2017-18 was announced. Also, extension of tenure of loans under the CLSS of Pradhan Mantri Awas Yojana (PMAY) was increased to 20 years from the existing 15 years. Mr. Puri observed that promoters of affordable housing projects will benefit from the cushion of two additional years for completing their projects, instead of the earlier timeline of within three years.
with thanks : The Hindu : LINK : for detailed news.
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