Impact of Budget 2021 on Real Estate Sector: Opportunities for Buyers and Investors

India is all set to become the fifth largest economy worldwide in the coming years and experts won’t disagree that India presents lucrative opportunities for investors. The recent announcements in budget seem to work well to aid the growth in the next few years.

In the budget speech, the finance minister allotted INR 54,581 Crores to the ministry of housing and urban affair, which came as a surprise after the unforeseen fiscal deficit that struck the economy during 2020.

Besides, with this budget, the government has facilitated and promoted the policy of ‘Housing for All’, increasing access to housing. Not only this, the budget managed to address some of the important issues that were not looked upon or were affected by the COVID-19 onslaught.

Let’s have a look at what opportunities the budget of 2021 has brought with itself!

• Affordable Housing
  In the instance of taking up a loan, the government had already allowed a deduction in interest rate to increase the purchasing power and affordability. The current budget has proposed a year-long tax holiday. In addition, to ensure the availability of affordable housing
  for migrant workers, the govt. also allowed tax exemption for notified rental projects. These several measures will surely propel housing demands.
• REITs and InviTS
  In a truly future-forward move, the finance minister announced to provide stimulus to REITs and InviTS. She also allowed the entry of foreign portfolio investors, which will eventually make REITs and InviTS more lucrative for a common man. Now, the finance minister has
  also made dividend payment to REITs and InviTS exempted from TDS.
• Infrastructure Development
  There is no doubt that a good infrastructure has the capability to propel the development of both commercial and housing real estate sector. A significant portion of the budget is devoted to the development of infrastructure across the country. Metros and RRTS access will now be provided at affordable prices. The budget also sees a rise in fund allocation for agriculture, rural infrastructure, and healthcare.
• Construction Worker
  An analysis of the budget 2021 will tell that the government plans to take some proactive measures for this segment of real-estate. The most important development is that the construction workers will be included under the welfare scheme. They will be provided with
  social security benefits and a portal will be launched to collect relevant information about them. The information will help formulate different schemes for the welfare of these workers.

The union budget presented is visionary and has focused on the growth of the country. No major taxation enhancement is something that all would welcome. With various developments and measures proposed in the budget, the real estate sector is likely to be positively affected and is expected to bring more opportunities to buyers and investors alike. As there is a great push to the real estate sector, you can choose to invest in the industry to gain good returns. KGK Realty has a wide spectrum of properties ranging from RIICO Industrial Plots in Jaipur to Flats near Airport. Whether you are looking for investments or building a piece of your own land, KGK Realty offers a wide portfolio for all your needs. Get in touch with one of our experts today.