The Confederation of Real Estate Developers' Associations of
India (CREDAI) has expressed confidence that with liberal norms for FDI and tax
incentives for the REITs, besides the focus on low cost housing, infrastructure
development and the budget allocation of Rs. 7060 Crores for development or up
gradation of 100 smart cities along with the promise to deliver 'pucca' housing
for all by 2022 will bring 'Acche Din' for the real estate sector.
Speaking about the budget C Shekar Reddy, National President, CREDAI said, 'The budget unfolds some important initiatives for the real estate sector. Our demand for easing the norms for the FDI in real estate sector has been accepted by the FM in the budget and to encourage development of Smart Cities, which will also provide habitation for the neo-middle class, requirement of the built up area for FDI is being reduced from 50,000 square metres to 20,000 square meters and capital conditions reduced from USD 10 million to USD 5 million respectively with a three year post completion lock in.
If these projects commit at least 30% of the total project cost to affordable housing, they will be exempted from minimum built up area and capitalisation requirements, with the condition of 3 years lock in. This will make more projects eligible for FDI funding and specially promote affordable housing segment.
