Budget Reactions

Budget Reactions
Industry Speak
Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE
“On the housing front, an additional deduction of Rs 1.5 lakh has been proposed on interest paid for affordable housing loans till March 2020. A model rental tenancy law will also be established to enhance the rental housing market. These measures, besides sustained investment in the Pradhan Mantri Awas Yojna will continue to support the housing market in the country.
On the shadow banking sector, the government maintained a fine balance between ensuring liquidity and enhancing scrutiny. Placing housing finance companies under the ambit of the RBI and incentives such as credit guarantees for NBFCs will provide a relief to this sector.
Mahesh Misra, CEO-IMGC (India Mortgage Guarantee Corporation)
“While the RBI may not have directly regulated HFCs earlier, Banks contribute 58% of Housing Finance originations anyway. So, uniform sectoral regulation can have benefits.  Smooth operational transition will be key given that several HFCs are newly incorporated and any slippages in an already tight environment could prove adverse. It is imperative for the housing sector to revive so that the economy can witness desired traction. NHB will continue to play a vital promotional role in that revival”.


Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Limited
“ The allowance of FIIs and FPIs to subscribe to REITs and INVITs would lead to an influx of investment in the cash strapped sector. The government’s assurance to provide one-time credit guarantee for the first loss up to 10% for purchase of high rates pooled assets of financially sound NBFCs will further help the cause”.
Manoj Gaur, MD, Gaurs Group & Chairman, Affordable Housing Committee, CREDAI
“CREDAI’s long standing proposals to reform archaic rental laws and promote public housing on government land figure have been among the immediate policy agenda outlined by the FM. With regulation of Housing Finance Companies returned from NHB to RBI, we hope that RBI would bring about much needed reforms for financing of real estate sector such as land, giving priority sector status to housing finance and lower cost of funding”.
Pradeep Aggarwal, Co-Founder & Chairman, Signature Global and Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development
“The full Union Budget 2019-20 continues the government’s consistent approach towards affordable housing with more focus on increasing the carpet area, re-defining income criteria and giving infrastructure status under the PMAY. With its commitment towards affordable housing, the government aims to increase the number of beneficiaries in terms of the credit-linked subsidy scheme (CLSS).”
Amit Modi, Director, ABA Corp and President (Elect), CREDAI Western UP
“In spite of the positives of this budget, we feel that the government has missed the bus when it comes to millions of first-time middle class buyers who were looking forward to this budget before their first real estate purchase, the fact is that even a small 1-2bhk Apartment in Tier-1 Metro cities like Delhi, Mumbai and Bangalore will cost starting Rs 50 lakh and above and these urban buyers looking at ease of living in cities have been completely ignored in the process.  Also the legitimate sector concerns, including industry status and online single window clearance, have been missed out in this budget. These steps in particular would have made a huge difference in transparency and turnaround time in delivery of housing to the masses across the country, while contributing towards the goal of Housing for All 2022.
Dhruv Agarwala, Group CEO, Housing.com/Makaan.com/PropTiger.com
“While it may seem like that there haven’t been any direct announcements to benefit the sector, the real story lies in the fine print. All the initiatives spoken of, to improve road, suburban railways and Metro connectivity; create a robust water management system; work on the Ease of Living; invest Rs 100 lakh crore in infrastructure over the next five years, will create more liveable cities and encourage people to invest in projects, even in peripheral areas and not overcrowd the CBDs and SBDs. On the regulatory side, we see the move to hand over regulation of housing finance companies to RBI, as a positive one. Another major area that has been addressed is Rental Housing – we look forward to the Model Tenancy Law that has been promised, to do away with the current archaic laws. The government’s clear focus on continuing to attract global investors into various sectors bodes well for the economy at large”.
Ashish Bhutani, CEO, Bhutani Infra
“With budget only catering to low cost housing, the middle class housing segment has been  completely ignored. We expected the government to meet our long awaited demand of Single Window Clearance & Industry Status so as to smoothen the process under real estate”.
Amit Raheja, CMD, Wealth Clinic
“In terms of real estate and housing the move towards improving the current rental laws is a positive move. The need for such a reform is immediate, as the current mandate in rental is still unstable. Post the Infrastructure status  designated to the affordable housing in the previous budget and now under PMAY (Urban), over 81 lakh houses with an investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 lakh houses. Additional deduction Rs 1.5 lakh on interest on loans will boost the buyer’s sentiment”.
L.C Mittal, Director, Motia Group
“In this budget the government has undertaken measures to provide impetus to the affordable segment of the society to realize its target to achieve housing for all by 2022 under Pradhan Mantri Awas Yojana, but has not taken any major steps to incentivize the real estate sector and to aid the developers and upper and upper middle class segment of the economy”.
 Nimish Gupta, MD South Asia, RICS. 
“The Union Budget is balanced and looks to further improve economic and social fundamentals, which have been aided by improving on its ranking on ease of doing business, focusing on ease of living, along with policy agendas being driven by reform and transparency.   Focus on rental housing can build on the agenda for ‘housing for all’ and add impetus to the residential market by increasing much needed housing supply. 
Mahendra Singhi, President, Cement Manufacturers Association
“The cement industry extends its full support in realizing economic reforms through rapid growth in infrastructure across housing, rail, road, waterways and highways. Cement sector offers to further the circular economy practices on close partnership through Government support. The Budget balances the aspirations for growth of both business enterprise and rural India.”
Rakesh Reddy, Director Aparna Constructions and Estates Pvt Ltd.
“The real estate industry was very hopeful to receive infrastructure status this budget, however, this has been a big miss. Proposing 1.95 crore houses from FY 20-22 under PMAY may not attract many trusted players as the financing is very high as compared affordable housing segment. However, from the consumer point of view, increasing the interest deduction up to Rs 3.5 lakh for affordable housing loans for purchase of a house valued up to 45 lakh is an encouraging move”.
Avneesh Sood, Director Eros Group
“Placing housing finance corporation over the circle of the RBI and incentives such as credit guarantees for NBFCs will grant relief to this sector. Overall, the Budget is likely to boost domestic demand and support India’s economic outlook”.