New Govt Lists Top 3

Priorities For Housing Sector

With Venkaiah Naidu, a member of Prime
Minister Narendra Modis Cabinet, assuming
charge as Urban Development and ousing and
Povert! "lleviation Minister #UP"$, the realt!
sector is aspiring for good da!s ahead%
Common&loor presents !ou the three priorities
listed b! the ne' UP" minister that could be a
game(changer for the sector%
Housing for all by 2022
"s per the agenda, 'hen )ndia celebrates its
*+th )ndependence Da!, ever! )ndian famil! 'ill have a house of its o'n% Currentl!,
)ndia faces a massive housing shortage% "ccording to a report b! Ministr! of ousing
and Urban Povert! "lleviation #MUP"$, in the !ear ,-.,, )ndias housing shortage
'as estimated at nearl! ./%*/ million households% 0hough a tedious task, Modis
cabinet is 1uite ambitious to fulfil the dream of their leader%
2o, is it possible3 Well, if there is a proper frame'ork 'ith Public(Private Partnership
#PPP$, 'here state government and municipal bodies 'ork together, the dream is
ver! much achievable% &urther, Vivin Mathe's, 4egional C56, Western 4egion of
Value and 7udget ousing Corporation Pvt 8td #V7C$, a pioneer in affordable
housing sa!s, 9faster approvals for pro:ects is the need of the hour% Due to unending
dela!s in approval process, the cost of construction continue rising, thereb!
increasing the overall cost of the pro:ect% 0hus, if single('indo' clearance is there,
building affordable pro:ects 'ill be much easier%;
0oda!, the construction cost is gro'ing at a faster pace% 0hus, reducing the
construction cost is also a necessit!%
Reuce !nterest rate on "o#e loans
With soaring propert! values, deni<ens are forced to take a home loan route for
bu!ing their dream home% o'ever, in past fe' !ears the interest on home loan has
also increased manifold making it difficult for a mid(segment home bu!er%
While addressing the media fraternit!, Naidu said, during the "tal 7ihari Va:pa!ees
regime, from .. per cent the interest rate 'as brought do'n to * per cent% No' it
has crossed the .- per cent mark%
e further suggested that corporates should take care of the housing needs of their
staff% "nd P2Us like 8)C, banks, rail'a!s, should not onl! take care of their serving
persons but also their e=('orkers%
!#prove !nfrastructure
2ince >NNU4M 'as a pro:ect initiated b! the UP" government, it 'ill no longer be
continued% )nstead a ne' scheme 'ill come into e=istence% "part from building .--
ne' smart cities 'ith 'orld(class infrastructure, the e=isting infrastructure 'ill also
be improved%
Naidu assured that all these points 'ill be discussed 'ith the &inance Minister "run
>aitle!, so that these are considered for the upcoming budget that 'ill be tabled in
the first 'eek of >ul!%
)nterestingl!, ne' cabinet ministers seem to be on their feet in making Modis
dream turn into a realit!% With an aim to ?undo all 'rongs done b! the
predecessors, the ne' finance minister has listed fe' things that 'ill be addressed
in the ne' budget% "lso, as middle class helped the ruling 7>P government score
Mission ,*, plus in the elections, the! are e=pected to highl! benefit from the
upcoming budget%
0he t'o ke! highlights of the upcoming budget that 'ill help the realt! market are
incentives for the first(time home bu!ers and reduced home loan interests% )f these
t'o come into action, it 'ill surel! infuse positive sentiments in the market that in
turn 'ill boost the tumbling sector%
0hough incentives for first time home bu!ers are e=pected, 'e hope that the! do
not come 'ith a catch like the budget of ,-.@% )n the last budget, an additional
deduction of up to 4s . lakh on interest 'as announced for the first time home
bu!ers, ho'ever it came 'ith a catch that the propert! should not cost more than
4s A- lakh% 0hus, it 'as a lucrative offer onl! for bu!ers in 0ier )) and ))) cities, and
not for metro cities as getting a propert! 'ithin 4s A- lakh is like a distant dream in
0ier ) cities, unless one move to the suburbs%
2o, 'ill "run >aitle!s budget live up to the e=pectations of the realt! sector3 Well,
'e 'ill have to 'ait and 'atchB
SourceC Common&loor%com
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