Proposed Smart Cities Anticipated To Drive Real Estate Sector

Bangalore : The NDA Government announced a list of measures to boost real estate sector. Prime Minister, Narendra Modi prediction of developing 100 smart cities is anticipated to amend the urban land space of India extensively. To turn his vision into reality, the central government shared this idea to state government and private developers. A sum of Rs 7060 crore is allocated in the current fiscal for the development of hundred smart cities which create a great thrust for real estate growth.

On July 16 2014, The Finance minister Arun Jaitley stated that these smart cities will be developed as satellite towns. The requirement of size of project area eligible for FDI was being reduced from 50,000 sq. m to 20,000 sq. m and the minimum capital conditions for FDI have brought down from USD 10 million to USD 5 million.

Finance minister Arun announced - Infra structure and real estate were amongst the winners. The real estate sector is feeling confident about better days ahead; He brought great relief to the sector by proclaiming a series of positive measures and allocations such as Rs 4,000 crore is allocated to affordable housing for mid to long term growth, this will provide housing for low income housing and economically weaker sections. The National Housing Bank and plan extended incentives for housing loans; development of slum took part of corporate CSR activities, Relaxation in FDI & REITs and moderating the existing mid sized cities.

Most of the changes are good for real estate sector such as, to improve funding accessibility to infrastructure and low cost housing will permeate to the end users and benefit them as well. "The government will also afford the essential inducement for REITS (Real estate investment trusts) which evade double taxation." Jaitley stated.

The president of the integration of Real estate developers and managing director of ATS Infrastructure Getambar Anand said, the opening up of FDI will bring prospect cheaper capital for smaller projects and development of quality & delivery of low cost and affordable housing projects.