VIJAYAWADA: Realtors and builders in Andhra Pradesh have welcomed the Union Budget, which they said is positive and augurs well for the state in general and the housing sector in particular.
They said Rs 15,000 crore for the Amaravati capital development has sent positive vibes, and the real estate value not just in the capital villages, but in the region as a whole has increased.
The realtors and builders, who left the state in search of better opportunities, are steadily returning now.
Builders and developers are of the view that affordable housing, focus on industrial and urban infrastructure will help stimulate growth in real estate, and investors will find more opportunities.
The Confederation of Real Estate Developers Associations of India (CREDAI) members opined that the reduction of capital gains tax on real estate properties from 20 per cent to 12.5 per cent is expected to stimulate investment in the real estate sector, boost real estate transactions, and improve returns for investors.
They observed that the removal of indexation benefits for calculating capital gains tax on real estate will not affect properties held before 2001. These properties will continue to enjoy the indexation benefits.
The indexation benefits for properties held before 2001 allow the valuation of these properties to be adjusted for inflation up to 2001 while calculating capital gains tax.
“The announcements of Union Finance Minister Nirmala Sitharaman regarding the housing sector and other budget decisions are economic boosters, more so for our State. The PM Awas Yojana (PMAY) 2.0 which focuses on affordable housing for the urban poor and middle class is good news for those in the real estate sector,” said Subash Bose of CREDAI AP Chapter
Amarnath of NAREDCO said the Union Budget has created a positive ambiance for the growth in the real estate sector. “Since the change of the guard in the State, the real estate business has picked up momentum, more so in the capital region. In the core capital region, the value has quadrupled after the elections. Now with Rs 15,000 crore funding for the State, the value of the land in the region may increase further,” he opined.
Ramesh Ankineedu, a builder, who left the State five years ago, has returned two months back and sees a positive change in the real estate sector now.
“In the last 40 odd days, the land value in Vijayawada and Guntur has increased by some 20 per cent to 30 per cent, and further growth is expected. There is also momentum in the clearance of inventory, and the sales of flats and plots have gained pace,” he said.