EXPECTED BUDGET IMPACT: Positive
LONG TERM OUTLOOK: Cautious
We expect Union Budget 2013-14 to be positive for the real estate sector. Positives are likely to come from increased focus on Rajiv Awaas Yojana, Indira Awaas Yojana and rural housing fund. This will benefit players focused on low cost housing.
Sector also seeks industry status as it generates huge job opportunity and industry status would also enable easier lending for the sector. But we believe that it may take a while before it is given an industry status.
Companies are also expecting expansion of interest rate subsidy net of 1%, which we believe can come through. Setting up of a real estate regulator to bring transparency in the sector may take some shape. Industry also expects increase in the income tax exemption limit and subsidized construction material for low-mid income housing segment which we believe may come through.