Proposed Smart Cities Anticipated To Drive Real Estate Sector

According to the ministry of housing there is a lack of 18.78 million houses in the country and 96% is in the low income segment and economically weaker. The government expressed its vision to offer housing for all by the end of 2022 for which it wants to partner with the private sector. This move will increase the development of affordable housing and low cost housing.

Amit Bhagat, Managing director of Ask Property Investment Advisors stated "The relaxation of FDI limit in the development of real estate is clear for inviting investments to smaller players and NRI investment."

With an eye on amplification of infrastructure in the country, the finance minister is planning to set up an institution called 3P India with a mass of Rs 500 crore. This will help public private partnerships (PPPs) in real estate sector.

It is being expected that the slew of realty improvement will revamp the construction sector by escorting positive changes for both Home builders and buyers. The union Budget will create a much needed thrust to Indian real estate sector. Many Tax benefits are included to people particularly, the increase in IT exemption limit against housing loan interest which will help in building a positive buyer outlook in the country. Increase in tax chunk will further reinforce a common man's hope of owning a dream dwelling home.

The Vision of PM to build 100 smart cities will give a positive push to real estate sector by driving a move from metros to untapped cities. The reduction in built area from 50,000 sq mts to 20,000 sq mts and capital requirement from 10 USD to 5 USD will boost FDI in real estate sector, many projects will qualify now.

There is no doubt that smart cities will drive real estate sector and expected to give the necessary push to economy too. Moreover, it sets an industrial heave with Infrastructure, Airports, Tech parks, SEZs which will help in boosting the real estate sector in long run.