Budget highlights for India's real estate sector - 0 views

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  #1 india incorporated on 25 Jul 14

   

  The real estate sector for the past few years has been suffering from a multiple whammy situation of delayed planning approvals, poor sales, low access to finance and when there is access - high costs. While a manufacturing sector player of similar turnover would be able to borrow between 13 and 15 per cent pa, a similar sized real estate player would have more entry barriers and, once crossed, would cost between 17-19 per cent.
  
  The Indian Budget for 2014-15 has multiple changes with the goal of encouraging enhanced access to funds for this sector. To begin with, there is an incentive in place now for individual home buyers by increasing income tax exemption on home loan interest payments - from Rs 150,000 to Rs 200,000. Encouraging more end users to buy homes as a property bought jointly by husband and wife would make them eligible for Rs 200,000 deduction for each of them.
  
  There is also an attempt to encourage foreign direct investments (FDI) into the development of Indian projects by reducing the minimum built up area from 50,000 sq meters to 20,000sq meters.
  
  Read More: http://www.indiaincorporated.com/opinions/item/3630-realty-corner-with-deepak-varghese-budget-highlights-for-india-s-real-estate-sector.html
  
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  <div class="cArrow"> </div><div class="cContentInner">The real estate sector for the past few years has been suffering from a multiple whammy situation of delayed planning approvals, poor sales, low access to finance and when there is access - high costs. While a manufacturing sector player of similar turnover would be able to borrow between 13 and 15 per cent pa, a similar sized real estate player would have more entry barriers and, once crossed, would cost between 17-19 per cent. <br /> <br /> The Indian Budget for 2014-15 has multiple changes with the goal of encouraging enhanced access to funds for this sector. To begin with, there is an incentive in place now for individual home buyers by increasing income tax exemption on home loan interest payments - from Rs 150,000 to Rs 200,000. Encouraging more end users to buy homes as a property bought jointly by husband and wife would make them eligible for Rs 200,000 deduction for each of them. <br /> <br /> There is also an attempt to encourage foreign direct investments (FDI) into the development of Indian projects by reducing the minimum built up area from 50,000 sq meters to 20,000sq meters. <br /> <br /> Read More: <a href="http://www.indiaincorporated.com/opinions/item/3630-realty-corner-with-deepak-varghese-budget-highlights-for-india-s-real-estate-sector.html" rel="nofollow" target="_blank">http://www.indiaincorporated.com/opinions/item/3630-realty-corner-with-deepak-varghese-budget-highlights-for-india-s-real-estate-sector.html</a> <br /> <br /> Visit us at: <a href="http://www.indiaincorporated.com/" rel="nofollow" target="_blank">http://www.indiaincorporated.com/</a></div>

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