D K Aggarwal of SMC Investments has conducted a detailed study of the impact of grant of “infrastructure” status to affordable housing in Budget 2017.
He has opined that the macro environment is extremely favourable for housing finance companies. The Modi government’s incentives in terms of allocation related to Pradhan Mantri Awas Yojana (PMAY) of Rs 23,000 crore would provide the much-needed momentum to the sector, he says.
He adds that the reduction in the holding period for capital gains tax in case of immovable properties from three to two years also augers well for the sector.
“In the days to come, supported by growth drivers such as rising disposable income, personal income-tax benefits, increasing urbanisation and economic growth of tier II and tier-II cities, the sector is likely to see immense growth,” D K Aggarwal opines.
A similar opinion has been expressed by other leading experts interviewed by ET.
One expert pointed out that affordable housing projects would now be able to attract investments from institutional, pension and insurance funds and external commercial borrowings at attractive rates. The borrowing cost of developer for construction of affordable homes would come down to below 10 per cent from 14-15 per cent in any other normal project, he added.
BloombergQuint ✔ @BloombergQuint
He has opined that the macro environment is extremely favourable for housing finance companies. The Modi government’s incentives in terms of allocation related to Pradhan Mantri Awas Yojana (PMAY) of Rs 23,000 crore would provide the much-needed momentum to the sector, he says.
He adds that the reduction in the holding period for capital gains tax in case of immovable properties from three to two years also augers well for the sector.
“In the days to come, supported by growth drivers such as rising disposable income, personal income-tax benefits, increasing urbanisation and economic growth of tier II and tier-II cities, the sector is likely to see immense growth,” D K Aggarwal opines.
A similar opinion has been expressed by other leading experts interviewed by ET.
One expert pointed out that affordable housing projects would now be able to attract investments from institutional, pension and insurance funds and external commercial borrowings at attractive rates. The borrowing cost of developer for construction of affordable homes would come down to below 10 per cent from 14-15 per cent in any other normal project, he added.
BloombergQuint ✔ @BloombergQuint
Stocks of small housing finance companies stand to benefit as lending rates fall.http://goo.gl/YGi4pI
Real Estate, Housing Finance Stocks Gain After PM Modi Announces New Schemeshttp://profit.ndtv.com/news/market/article-real-estate-housing-finance-stocks-gain-after-pm-modi-announces-new-schemes-1644084 …
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