The real estate sector, particularly affordable housing, will get a leg up with the Finance Ministry’s new stimulus package.
As part of this AatmNirbharBharat 3.0 package an additional outlay of Rs 18000 crore will be provided to PMAY (urban). This is in addition to Rs 8000 crore already provided to PMAY for the FY 2020-21.Further, the differential between circle rate and market value of property has been doubled to 20% for tax incentive till June 30, 2021. This income tax relaxation will be applicable to housing units costing up to Rs 2 crore , in order to bring a large number of home buyers under its ambit.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman , Assocham National Council on Real Estate, Housing and Urban Development, ” The additional outlay of Rs 18000 crore under PMAY in the midst of festive will stimulate the sentiment of home buyers, in turn further giving a fillip to the sale of affordable homes. This together with income tax incentive for homes priced up to Rs 2 crore, will help developers liquidate their inventory. This will thereby ease stress and provide much needed momentum to real estate recovery.