India realty news:Budget 2014

Created on 16.07.2014 08:33:53

Budget 2014: FDI in real estate, Affordable housing, Tax Incentives, Smart Cities will boost real estate sector
With the Union Budget announced on July 10th, Government announces a series of measures to boost real estate sector in India prominent among them are
a) FDI (Foreign Direct Investment) in real estate norms been relaxed now the requirement of built-up area and capital conditions are reduced from 50000 sq metres to 20000 sq metres and $10 million to $5 million.
b) Rs 7060 crore for development of 100 smart cities which can create employment and new real estate markets
c) Rs 8000 crore for Rural housing and Rs 4000 crore for affordable housing through national Housing Bank.

d) Home Loan tax rebate increased from Rs 1.5 lakh to Rs 2 lakh which can yield significant savings for home buyers

e) Tax Pass through for REITs (Real estate investment Trusts) which can increase pooling of large funds from Foreign countries.
Real estate experts and developers across country feel this budget gave positive steps, encouragement that can spur the real estate sector in India.

Housing Prices Rose in 24 Cities during 2007-2013: Natinal Housing Bank Economic Survey
Zee News reports as per Economic Survey of National Housing Bank’s Housing prices index (RESIDEX) prepared for 26 major cities shows housing prices rose in the country during 2007-2013.
The Survey reports compared to 2007 (base year) housing prices of residential properties during 2007-2013 have witnessed increases in 24 cities with the maximum increase in Chennai (230 %), followed by Pune (135 %) , Bhopal (123 %), Mumbai (122 %). Only 2 cities witnessed housing prices fall Kochi (-15 %) and Hyderabad (-7 %).

Tax incentives for REITs and Infrastructure Investment Trusts: Business standard
Union Budget 2014 provided clarity and proposed tax incentives for Real estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) will help boost real estate and infrastructure sectors in India and will attract long term funding from foreign and domestic investors.
REITs and InvITs which are listed on stock exchanges and registered with SEBI (market regulator) will now get Tax Incentives as announced by Finance Minister Arun Jaitley “I intend to provide necessary Incentives for REITs which will have pass through for the purpose of taxation. As an innovation a modified REIT-type structure for infrastructure projects is also being announced as Infrastructure investment Trusts (InvITs) which would have a similar tax efficient pass through status, for PPP(public private partnership) and other infrastructure projects.