The need for powerful, rapid economic growth is more acute than ever. Due to the pandemic crisis, the Real Estate sector had high expectations from the government. Indeed, in the union budget, 2021, the government met every expectation.
In order to motivate real estate developers and home buyers, Budget 2021 proposed to raise the safe harbor cap by 10% for the designated primary selling of residential units. In addition, the Finance Minister of India, Nirmala Sitharaman took the initiative to make housing affordable. Earlier in 2019, the Government granted an extra deduction of interest in the amount of Rs 1.5 lakh on a loan to purchase an affordable home.
The government has now proposed to extend the eligibility of this deduction by one more year, which is until 31 March 2022. In addition, in order to maintain the continuous supply of affordable housing, Budget 2021 proposed that affordable housing projects should be able to use tax holidays for a further year, until 31 March 2022.
Budget 2021 is also directing efforts towards infrastructure development. The Finance Minister announced that 1,016 km of metro and RRTS is under construction in 27 cities. Two new technologies, Metro Neo and Metro Lite, will also be deployed to ensure the same experience at a lower cost. It will provide convenience and safety in some cities and peripheral areas.
The Government has therefore taken requisite measures to boost the sector of the built environment. Now, it's up to us to take advantage out of these opportunities. On one hand, private investors can start investing with exemptions introduced and more simplified rules and deductions. On the other hand, young graduate professionals can utilize this time to upgrade themselves with the sector-specific MBA program.
With high investment, the industry would see an increase in demand for more skilled professionals. The budget further highlights the establishment of infrastructure resources and the advancement of expertise in the area of artificial intelligence, which will play an important role in hiring professionals for the future. If well executed, the policies would serve as a game-changer for the Indian economy.
About RICS SBE:
RICS School of Built Environment (RICS SBE), Amity University is an industry led academic institution which delivers specialized undergraduate and postgraduate programs to students ambitious to work in real estate, construction and infrastructure sector. It also aids as a hub for research and development of technical proficiency in built environment.