GUWAHATI, March 1 � The Assam Real Estates and Infrastructure Developers� Association (AREIDA) has hailed the Union Budget, terming it as growth-oriented.
AREIDA president PK Sharma stated that it was overall a growth-oriented Budget which will lead to increased demand for housing. There is a concession to the real estate investment trusts, which allows pass-through of rental income and capital gains for income tax purposes. This will benefit the real estate sector, he said.
�However, there would be an increase in the construction material costs and property costs due to the impact of increased sales and service tax. Reduction of corporate tax is welcome. However, it does not have any major proposals for the real estate sector, neither in terms of concessions to individuals nor in terms of accommodation to developers,� said a statement from AREIDA.
On the government�s stand on the approval process, it said that the specific commitment to take significant initiatives to alter the approval process in order to save time and protect applicants from harassment is amongst the most welcome announcements, as viable projects get sick in years of delay while awaiting approval in various government offices.
The allocation of Rs 22,000 crore for urban development and housing, and the reiterating of the government commitment towards �housing for all by 2022� is welcome. The acknowledgement of the fact that India needs two crore and four crore houses in urban and rural/semi urban areas respectively, is an endorsement of the significant role that the realty sector is required to play in nation building, added the statement.