Post Budget Reaction by Mr. Pranab Datta (Knight Frank India)

“Overall this budget does not have much to look forward to. With reference to the real estate sector, there is an absence of any intent to address the issues concerning the sector. High property prices and low demand coupled with tight lending scenario has further postponed the ambition of owning a house. Amongst other challenges for the sector, unprecedented rise in urbanization is a challenge as well as an opportunity; however, the lack of road map will prolong the problems of the urban centers. Having said that, the residential segment has got some attention in terms of fund allocation to rural housing and ECB window for affordable housing projects. Higher allocation for infrastructure and rural oriented scheme should have a positive cascading effect on the economy. Thankfully, residential leases have been kept out of the ambit of service tax.”