Budget Reaction from Sachin Bhandari, CEO, VTP Realty

Government has taken two major initiatives to formalize and control financial institutions in the country. Recently there has been a crisis in the NBFC sector and the steps taken by the Government will help the NBFCs to raise the money quite easily, because they have been the backbone of growth in India. Including the interior and rural areas. Thus helping increase the GDP of the country as well as the real estate sector on the whole. So one of the big positive steps taken by the Government is to support the NBFCs in infusing more funds into the sector.  Secondly a second major move, which must be lauded, is to bring all housing finance companies under the ambit of the RBI. RBI has been controlling only the banks uptil now while the housing finance companies were being managed by the NHB (National Housing Bank). RBI will bring in more fiscal discipline and we expect all NBFCs to be more structured and tightly regulated guaranteeing a boost to not only the sector but overall growth for the country.  I believe these are the two major announcements made in the budget today that will have a positive impact on the realty sector.

Amongst some of the other initiatives the Finance Minister has announced, much is being proposed to continue their push towards Affordable Housing. Several reforms would be undertaken to promote rental housing which indicates that a modern tenant law will be formulated.  To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed up to 31 March 2020 for purchase of house up to ₹45 lakh. The government’s consistent efforts towards Housing for All by 2022 is very encouraging for us as a business and also as consumers. To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed up to 31 March 2020 for purchase of house up to ₹45 lakh. The government’s consistent efforts towards Housing for All by 2022 is very encouraging for us as a business and also as consumers.