Comment of Shri Sushil Mohta on Budget
Mr. Sushil Mohta, Chairman, Merlin Group and Ex - President, Credai - Bengal commented on the incentives for real estate announced in the budget, “We welcome the Government’s decision to incentivise affordable housing by providing additional deduction of Rs 1.5 lakh above Rs 2 lakh for interest paid on loan taken for purchase of residential house having value upto 45 lakh. It should have been better if the upper limit is Rs 60 lakh for tier one city. This will boost the real estate market and encourage middle income class buyers. Also Govt’s decision to provide unutilized land for affordable housing through PPP model will spur the growth of real estate market . In West Bengal, there are unutilized lands of Port and Railway which can be used for the development of affordable housing segment. The circle rate by the State Govt needed to be rationalised for this to be successful as the circle rate normally is high. The incentivisation will witness increase in demand for affordable segment."
The huge investment as proposed in Infrastructure will also boost economy
Govt is considering to encourage Rental Housing , it is also much needed step. In metro city the size of residential unit is increased from 30 sqm to 60sqm and in non metro 60 to 90 sqm, for Benefit of income tax exemptions to developer
This will attract developers to develop affordable housing.