Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > Budget 2021: Some Hits and Misses on Real Estate Sector

Loan for Home

Budget 2021: Some Hits and Misses on Real Estate Sector

Budget 2021: Some Hits and Misses on Real Estate Sector

The real estate sector is the second largest employer in India after agriculture. It is no secret that real estate faced a significant slowdown due to the coronavirus pandemic and the migrant workers’ crisis. Thus, stakeholders had high expectations from budget 2021 on real estate sector.

Finance Minister Nirmala Sitharaman made some favourable announcements in her 2021 budget speech. She has made several new provisions and increased investments to get the real estate sector back on its feet, but some significant opportunities were also missed. Let us look at the budget 2021 housing sector highlights below.

What the real estate sector gained

The FM has given major incentives to the real estate sector with a focus on improving investment.

Affordable housing

Nirmala Sitharaman had announced an interest deduction of up to Rs. 1.5 lakhs in the 2019 budget. This provision has been extended for another year until March 2022 on a home loan taken to buy an affordable house.

Further, she has also extended the tax holiday on affordable housing projects for one more year, up to March 2022. This will create an incentive to launch more units under the affordable segment and make the loan more readily accessible.

Additional Read: Home Buying In 2021: Is It the Best Time to Buy A New House Now?

Affordable rent

The Union Budget also introduced tax provisions to make affordable housing rentals more accessible for migrant workers. Now, workers will benefit from tax exemption on notified Affordable Rental Housing Projects.

REITs

The Ministry of Finance has approved of private investment formats like REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts). The move is expected to bring in more private participation in the sector and attract Foreign Portfolio Investors to augment the flow of funds in the Indian realty. And make better development and infrastructure possible in the sector.

What the real estate sector missed

Experts opine that the Union Budget 2021 hardly introduced any measures to meet the real estate sector’s demands. Apart from offering incentives on the payment of home loan interest rates and some tax reliefs, the budget failed to make any significant offers.

Many are of the view that providing industry status to the real estate sector would have been highly beneficial. This has been one of the oldest demands of the stakeholders, and gaining industry status would have enabled them to reduce the overall supply-side costs, making houses more affordable.

Additional Read: What Are the Things Home Buyers Should Expect from Budget 2021?

To sum up

There may be some disappointment for real estate builders, but aspiring home-owners should make the most of the current provisions and purchase a home. Finance your purchase by taking a loan from Tata Capital and obtain a loan amount of up to Rs. 5 crores.

Tata Capital provides a quick loan disbursal with minimum documentation. You can also use our EMI calculatortounderstand your monthly EMI payouts. Visit our website to check our home loan eligibility criteria today!

Apply For House Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.