Dr Najeeb Zackeria, Chairman, Credai Kerala on Budget 2018

The Union budget 2018 aims to make a positive impact for Agriculture, Health, Education, Investments, Food Processing and Affordable housing sectors. This should create excellent Job opportunities in the coming years as well. The Budget recognises the role of Infrastructure sector as growth driver of the economy with an estimated investment requirement of Rs.50 Lakh crore. Affordable housing sector will continue to grow in tier 1, tire 2 and tire 3 cities in the coming years. This will also witness growth in auxiliary industries such as Steel, Cement, construction materials and transportation.
Real estate had recently received a major reduction from 12% to 8% in GST, for home purchase under Credit Linked Subsidy Scheme (CLSS). The Budget has added to this concession for housing by adopting a target of 31 lakh homes to be built in urban areas and 51 lakh in rural areas, thereby giving a boost to employment opportunities. In order to do so, Government has planned a Dedicated Affordable Housing Fund under NHB with priority sector lending shortfall contributing to this fund.
More than these direct measures, however, it is the deeper economic logic of the Budget which is the major boost for housing and real estate. The proposal to introduce DDT for equity mutual funds and 10% tax on the long term capital gains on equities will have some positive results in real estate sector. Most importantly, the public investment in infrastructure in the smart cities and its connectivity multiply investment prospects for real estate sector.
Smart Cities and AMRUT programs envisage an aspirational approach to urban development. Credai believes that involving private sector developers in these programs would vastly enhance their impact. Overall this is a balanced budget, focused on the long term.