Budget 2017 Expectations: Urban Consumers Expecting Up To Rs. 5L Cut In Tax Rate

With just few days left for Budget 2017 to be declared, Urban Consumers’ expectations are surging and are expecting a good turn in real estate. Announcement of Pradhan Mantri Awas Yojna (PMAY) already brought great relief to both the consumers and developers by launching its Housing for All scheme. The latter comes with the deal under CLSS (Credit Linked Subsidy Scheme) scheme where the houses will be provided to the consumers with subsidy at Rs. 6 Lakh loan regardless of city category and according to the cost and construction of the property.

Who will be the Beneficiaries?
The Lower Income Group (LIG), certainly. However, to this, Chairman & Country Head,  JLL India – Anuj Puri questioned the government if the beneficiaries can be the Urban Professionals who do not belong to either of the EWS (Economically Weaker Section ) or LIG but hoping to buy a home.

To this, there was an online survey conducted and around 95% of the respondents nodded to the idea as this will encourage the investment from the urban population.
Now, according to a recent survey conducted on 2017 Budget Expectation, approximately 65.8% people had shared positive response and are expecting a positive inducement in the real estate market. Most of the policies to be generated in the budget 2017 are expected by the consumers to fall in their favour.

Budget 2017 & Consumers’ Expectations
The budget is expected to give a push to the Urban professionals to invest more in the real estate sector. The key factors for the same may include –
• Cut in tax rate
• Liquidity in market
• Subsidy provided by the government

For sound investment in real estate, the segment must have financial security that can be brought by the cut in the tax rate. On the other side, cash crunch caused due to demonetization must be done away soon.  Nevertheless, Delhi-NCR real estate sector still witnessed certain transactions.