Budget and Finance

Union Budget 2019

Enhanced focus on affordable housing to achieve ‘Housing for All’ Mission

Union Budget 2019 brought focus to affordable housing by emphasising on increasing demand. In the past, the Government has already awarded the infrastructure status to the affordable housing segment, increased the carpet area and re-defined income definitions to boost supply in the market. The Government has already extended the 100% tax holiday under section 80-IBA of the Income Tax Act, 1961 to 31st March 2020.

With an objective to help buyers in the affordable and mid-housing segments, an additional exemption of ₹1.5 lakh on interest paid, over and above the existing ₹2 lakh, has been provided for properties up to ₹45 lakh. Considering that a majority of buyers fall in the lower and mid-income segments, this benefit will boost demand. This will benefit first-time home buyers who will enjoy the benefits of interest subvention under the CLSS scheme and the announced tax benefits. With effective interest coming down, it will increase the eligibility for the mid-income housing segments.

Bengaluru among the top 10 asian cities

Bengaluru was ranked among the top 10 Asia-Pacific cities for cross-border investments in real estate. Real estate investment in Bengaluru doubled to ₹11,200 crore in the fiscal year 2018-19 from ₹5,600 crore in the fiscal year
2017-18, according to CBRE South Asia Ltd.

Metro phase 2, likely to boost realty projects

The real estate sector in Bengaluru is likely to get a boost with improved connectivity options to peripheral areas. The introduction of these will provide cheaper and faster commuting options and will enhance demand for housing outside the core city. This could open up affordable housing options in peripheral areas like Rajanakunte, Electronic City and Devanahalli.

Bengaluru moves up in luxury realty ranking

Bengaluru is the 15th fastest-growing luxury real estate market in the world exhibiting its love for sophisticated tastes, according to Knight Frank’s Prime Global Cities Index. Bengaluru has moved five places up from last year, racing ahead of Mumbai (at 30).