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Real Estate The Real Hope

Real Estate Sector

Real Estate The Real Hope

Within a span of six months since the new Government took over, there is a growing positivity among the real estate sector that can now hope for a new phase of growth: be it in the commercial or the residential segments. The Government has taken many steps to create an environment of growth for the sector. The policies have been two-pronged, which includes providing greater access to funding on the one hand and extending liquidity to the end-user to strengthen affordability. Both steps would lead to a balance of demand and supply in the near future. The Indian government has allowed foreign direct investment of up to 100% under the automatic route in real estate projects. This will be for housing, townships, commercial and industrial construction to  in India.  There is provision for reduction in the area from 50,000 sq m to 20,000 sq m and reduction in minimum capitalisation for FDI investment from $10 million to $5 million. This will help boost urbanisation, especially in tier-2 and tier-3 cities, which were struggling to develop large projects. Making them smaller and more manageable will attract FDI and expertise in setting up new townships and cities. To ensure that there is a genuine effort to increase affordability, the government announced some key reductions in the direct tax structure in the interim budget. The tax benefits for consumers and housing loan borrowers were the main demand from the industry to stimulate the sector. The increase in exemption limit from Rs 2 lakh to Rs 2.5 lakh will help household savings. Additionally, the limit on home loan interest has been raised from Rs 1.5 lakh to Rs 2 lakh. Increased savings coupled with increased tax benefit will go a long way in motivating home buyers who have been reeling under the pressure of high inflation and high interest rates.Real estate is simply the land and any improvements on it. Renters and leaseholders may have rights to inhabit land or buildings that are considered a part of their personal estate but are not considered real estate.A real estate trend is any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change. This phenomenon can be a result of the economy, a change in mortgage rates, consumer speculations, or other fundamental and non-fundamental reasons.

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Real estate is simply the land and any improvements on it. Renters and leaseholders may have rights to inhabit land or buildings that are considered a part of their personal estate but are not considered real estate. A real estate trend is any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change. This phenomenon can be a result of the economy, a change in mortgage rates, consumer speculations, or other fundamental and non-fundamental reasons. visit site http://www.indiantrio.com/

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RealEstateIndia
RealEstateIndia
  • Member since: 12/06/2016
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Real Estate The Real Hope

12/06/2016 20:00

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