06/07/2019
Union Budget 2019 Expectation
Amit B Wadhwani, CoFounder, Sai Estate Consultants Chembur Pvt. Ltd.
"The Union Budget of 2019, presented by Finance Minister Nirmala Sitharaman has given clarity on various issues faced, especially by the real estate sector. India is committed to becoming a $ three trillion economy by this year itself with a focus on the development of heavy investment in infrastructure, digital economy and job creation. The liquidity crisis of NBFC was given due diligence in this edition of the Budget, with the Government allowing FII’s and FPI’s to invest in their debt papers alongside a one-time, six-month partial credit of INR 1 lakh crore to PSB’s for the purchase of high-rated NBFC assets. This shall be a positive step in resolving the liquidity crisis faced by NBFC’s in the recent past and will help ensure the revival of lending activity, as well as ensure the sustained flow of capital for them.
The other key reforms that will impact the real estate industry include the further development of the ‘Affordable Housing for All’ initiative, with a fund of 4.83 lakh crore sanctioned for the construction of 84 lakh houses under the Pradhan Mantri Awas Yojna. Also, reformation of rental laws, the introduction of newer amenities and deductions in the home loans for affordable housing sector will boost NRI investment in the sector. With this, the government aims to convince the fence-sitters back into the market to narrow the gap between supply and demand. The Government has also empowered RBI to regulate the Housing Finance Companies (HFC’s) which will help in quality assessment by the lender for fear of facing scrutiny if found indulging in improper practices. With attempts of attracting NRI investments, giving a boost to rental housing, developing major infrastructure projects, ensuring job creation and advancing economic development, the Union Budget of 2019 is a sign of positive things to come.
