2016 Financial Budget focuses on Affordable Segment in Housing Market

Though the union budget 2016 has focused on infrastructure and agriculture, even real estate market has gained benefits. Before the budget, if anyone wants to buy flats for sale in Chennai, they used to wait till price reduction since options in affordable housing segment remains limited. This year, the budget is focused on low-cost housing and many attractive steps are taken. For first-time buyers, an increased tax exemption of Rs.50,000 on housing loan can help a lot.

 Although prospective buyers looking for Apartments in Chennai are feeling happy for the recent budget announcement, doubts remain on what short-term benefits would be. Over long term, the budget is likely to show improvement in the buyer’s decision. As per expert’s explanation, the government is also taking steps by focusing on the mission ‘Housing for All’. Most first-time buyers’ focus on affordable flats in Chennai and therefore, the recent budget announcement is giving way to achieve this mission. There are many people who feel that the finance minister could have done more. The demand for housing sector in mid-income segment, is high. Furthermore, the tax collected from apartments in Chennai by the government is 10-15%. Hence, the budget could have provided some relief for people in service tax for houses.

Although the government did not reduce spending, the budget created a strong message of fiscal management, by not increasing fiscal deficit targets. Additionally, the government also announced the implementation of a single-window system, incentives like higher FSI for affordable housing projects and infrastructure status for affordable housing projects. The budget has provided many offers for affordable apartments for sale in Chennai that benefit both builders and buyers such as;

• Lower interest rates
• Infrastructure development in secondary areas would invite more affordable housing
• Single-window clearance system gives way for quick project approval.
• Greater availability of land for developing flats in Chennai, especially in developed regions.