Budget 2014 will usher ‘New Era” for Real Estate Industry.

An article from Realtycompass.com

Here is our take on the long-term & short-term impact it will have on Real Estate Industry..



Measure
Benefits
Impact Horizon
Biggest Beneficiary
Allocation of Rs. 7600 crore for 100 Smart Cities
1.      New Micro-markets for Investments
2.      Reducing of pressure/prices in Urban cities


Longer term
a.      Investors in Smaller Cities
b.      End Consumers

Relaxation of FDI for Small Builders
1.      Cost of Funds become cheaper for builders
2.      More Competition translating into better & cheaper projects

Immediate
a.      B & C category builders
b.      End Consumers
Incentives to REIT
1.      Higher Liquidity for Real Estate Investors increasing the breadth of investors
2.      Easy & flexible access to funds by developers
Immediate
a.      New breed of Investors
b.      A category Builders
Increase on Housing Loan Tax Exemption to 2L Rs
1.      More incentive for end users to buy home
Immediate
a.      Lower TCO for End-user cum investor
Allocation of 4000 Crore for Low Cost Housing via NHB
1.      Easy access to housing for lower middle class population
Immediate
a.      Lower Middle Class consumers

Slum re-development as part of CSR
1.      Cities become cleaner
2.      Poor people have access to better facilities
Longer term
a.      Slum Dwellers
b.      Investors as they will see better appreciation with Slum free location
Additional Tax saving as part of 80 CC
1.      More cash flows for buying house
Immediate
a.      End Users
PPP for Bullet Trains
1.      Easy access for funds to modernize railways
Longer Term
b.      End Users




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