2017 Union Budget, Government Announced Incentives For Housing For All

An increase in allocation from Rs 15 thousand crore to Rs 23 thousand crore for the Pradhan Mantri Awas Yojana, extending the time period of project completion from three to five years, and determining benefits based on carpet area instead of built-up area.

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Union Budget, Government Announced Incentives For Housing For All

2017 Union Budget gave players in the affordable housing sector many reasons to cheer. In keeping with Prime Minister’s vision of ‘Housing for All by 2022’, which targets building of more than two crore homes for the Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in urban locations over the next five years, the government announced a slew of incentives.

Also Read: Centre Government Increases MIG Affordable Housing Carpet Area

These included an increase in allocation from Rs 15 thousand crore to Rs 23 thousand crore for the Pradhan Mantri Awas Yojana, extending the time period of project completion from three to five years, and determining benefits based on carpet area instead of built-up area, among others.

One of the most significant announcements was the infrastructure status accorded to the affordable housing sector. Among other things, it allows people at the bottom of the pyramid to have access to cheaper funding for their homes. Owning a home is high priority for most of us and the re categorization of the sector is a step closer to making the dreams of many Indians come true.

Also Read: Tax Reforms Could Be Considered In Budget 2018, Homebuyers Expectations

The positive sentiment towards affordable housing in India is evident from the spike in demand. Last year, new affordable housing units grew 27 per cent. By 2022, the affordable housing space is expected to turn into a Rs 6 trillion opportunity. With demands rising, potential home buyers will turn to banks and NBFCs for loans.

Also Read: Homebuyers Can Avail CLSS Scheme With Reduced GST Rate Of 8%

The affordable housing sector will be hoping for the streak of positive measures to continue with this year’s budget. More specifically, Housing Finance Companies (HFCs) will be looking for reform changes with respect to raising funds.

Source Link- https://economictimes.indiatimes.com/.

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