Sanghvi Group and Secy of MCHI Mira – Virar City [Apr 2012]

This union budget has focused on affordable housing by allowing ECB for low cost affordable housing projects and setting up credit guarantee trust that will give better capital availability for developers of low-cost housing. This is one of the moves that will help in timely project execution resulting in higher volumes .This will lower interest cost for developers and address the housing shortage of this segment. The budget has also extended 1% interest subvention scheme for affordable housing continues houses worth up to `25 lakhs, however the price band could have been broaden to accommodate units at higher price points. The budget not granting industry status to the sector comes as a disappointment since the move would have helped raise funds at low rate of interest from financial institutions. Raising of service tax from 10 to 12% is not a favourable step. Overall the budget is not as per expectations taking into consideration the current scenario of real estate.-Shailesh Sanghvi, Director of Sanghvi Group and Secy of MCHI Mira – Virar City

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