NEW DELHI: Finance Minister Arun Jaitley in his Budget 2017-18 speech has announced one of the much needed changes for the Indian real estate sector. The affordable housing will be given infrastructure status which is likely to result in increased participation from private players.
“The announcement of affordable housing being given Infrastructure status is a welcome move and will act as a catalyst to meet the objectives of Housing to all by 2022. Credit off-take towards affordable segment of housing will lead to creation of supply especially for both stake holders the first home buyer and developer who will now have access to cheaper funding,” said Ravi Ahuja, Executive Director, Office Services & Investment Sales at Colliers International India.
“Considering the impetus being given to road infrastructure, manufacturing and affordable housing, the government have put in all the required ingredients to incentivise urban decongestion and the development of new industrial cities around our industrial transport corridors”
Jaitley also announced that National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18. “NHB allocation will give a big push to affordable Housing Finance Ccompanies namely AU housing, Gruh Finance, Repco,” said India Ratings.