Industry Reaction on Budget 2011 - 2012 - Mr.Bhim YadavBudget Reaction - Real Estate - Mr. Bhim Yadav, CEO - Falcon Realty Services (P) Ltd.
Raising the priority home loan limit to Rs. 25 lakh will come as a relief to people who want to own a house of their own in the said bracket. With this, the demand for affordable housing will also be on an increasing roll. Infact 1% interest subvention has been offered on housing loans upto 15 lakhs which will increase the buying spree of apartments falling under this category.
Falcon welcomes this initiative taken in the Union Budget which will provide a window for the buyers to own an apartment of their own, giving a push up to budget housing. As most of the buyers opt for housing loans, such financial support will help them in boosting the affordable housing sector. This will see a lot of activity in and around the areas of Delhi NCR buzzing with houses with Rs. 25 lakhs bracket.
With individual tax-exemptions from the current Rs 1.60 lakh to Rs 1.80 lakh will somewhat increase the buying behavior within this segment. However, the real estate companies were expecting that the government should also provide 80 IB extension by 1 more year and 80C for Principal Repayment by RS 1 lakh p.a. But such reforms were not seen in the Budget this year.
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Union Budget