After much expectation, the 2016 Union Budget received a lukewarm response from the real estate sector, as well as homebuyers. On the other hand, it does give the sector hope for some long-term indirect benefits.
The Union Budget 2016-17 hasn’t been all that the developers or the home buyers had hoped for, from a business and investment point of view. Nevertheless, on a positive note, the budget has paved the way for long-term infrastructure development.
The takeaways for the home buyer, are a mixed bag. The 0.5% hike in service tax is an additional burden on home buyers. The failure to raise personal income tax exemption slabs, has dampened spirits. Economic analysts point out that the budget does not provide for greater employment generation or additional disposable income for urban, middle-class buyers. These are the key necessities, to fuel housing demand in the cities.
For developers, there is no provision that could lower the input cost of projects. Some analysts add that the HRA benefits announced in the budget, will not encourage people to buy a house. Additional surcharge of 15% on income over Rs 1 crore, could be a dampener for the luxury housing segment, as well.
Anuj Puri, chairman and country head of JLL India, states that the announcements have fallen below the expectations but feels that there are some major positive proposals too. While three of the real estate sector’s major expectations – increased HRA deduction, removal of DDT from REITs and boost to affordable housing by allowing 100% deduction on profits made by entities constructing them – have been addressed, the budget offered no financial protection from project delays to home buyers, he explains.
“Most first-time home buyers in the major metros, will be left out of the additional Rs 50,000 tax exemption announced today, as it is applicable only on houses worth up to Rs 50 lakhs that are bought with loans of up to Rs 35 lakhs. This announcement will mostly benefit first-time home buyers in tier-III and tier-II cities. The infrastructure sector was a major beneficiary today,” he elaborates.
Vipul Shah, managing director of the Parinee Group, asserts that the government’s move, to maintain a fiscal deficit target of 3.5% is good for the financial markets and the economy and will pave the way for a strong and sustainable economic growth. The RBI can now ease the monetary policy further in the current cycle, with the government sticking to its fiscal deficit roadmap.

1. Cumbersome and High cost of land authentication processes.
2. High cost of land owing to the high cost of land authentication processes.
3. High cost of building materials.
4. High cost of transportation of building materials to construction site.
5. Lengthy duration in the construction of houses.
6. Shortage of adequate mortgage
7. High interest rates on loans for construction of housing.

• Endurance: Can withhold harsh climates
• Best for low cost housing
• Speed: Buildings can be delivered at a rate uncommon in Nigeria
• Range of use: Residential, Schools, Hospitals etc.
• Shipping containers are designed to be stacked, fully laden, up to 9 stories high, providing the structural strength
• Enough structural stability for storm conditions that we expect from every building
• Enough daylight access (there are minimum standards in building regulations) from windows and doors.
• Insulated from sound transmission from the environment or other parts of the building.
• Insulated to prevent outside cold or heat being transmitted through walls, ceiling and floor into the interior, where an ambient temperature of 21degrees Celsius is required (energy performance).
• Adequate protection from fire coming from outside to inside or from inside going to the next floor.
• Well ventilated to create a healthy indoor environment.
• A safe wiring schedule, with safety breakers, convenient set of wall sockets, switches and lights.
• The (optional) availability of a bathroom and a kitchen.
• Sustainable use of materials: we all have the responsibility to be environmentally conscious.

Wisdom is a shelter as money is a shelter is as popular today as the phrase “safe as a house” because the real estate or property is a matter for security and certitude. Owning a home and also as an investment may be the wisest move any discerning investor might ever make.
Apart from Amsterdam, London is one of the most expensive cities in the world to construct a house, currency fluctuations, increasing demand for houses and commodity prices are the chief major causes of this condition.
In another development, house prices in London has however continued to fall according to our partners the Royal Institute of Chattered Surveyors, (RICS) the situation has persisted since late November, 2014 up to February, 2015. Based on reports on prices the nays seem to be having a field day than the ayes used to have it.
Moreover, this is not the same in places like Northern Ireland and Scotland where the direction has been upwards for investor’s, owners or the landed class and their employees.
This drop in prices cannot be too far from the shortage in the housing supply like in other places or cases in some European countries, with supply not enough being the scenario. Some say the coming election may delay sales for sellers who may wish to put their homes or property for sale. On the flip side international students, workers, small investors or star talents, London might be more affordable now, than four-to-five months ago. By and large speculations are rather more tended towards a 30% rise over the next 5 years in terms of capital value (CV) for the city of London.