Response to Union Budget: Mr. David Walker, Executive Director, SARE Homes

Delhi, March 2, 2013: According to Mr. David Walker, Executive Director, SARE Home, “The announcement of National Housing Bank (NHB) setting up a Urban Housing Fund, tax sops for first housing loan of Rs 25 lakh and provision of an additional Rs 1 lakh rebate in addition to the existing Rs 1.5 lakh rebate  will help to revive the demand for housing stock.
The allocation of Rs 2000 crore for housing in the  urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units. Provision of Rs 6,000 crores in the rural areas would certainly result in more permanent constructions.

The budget move to levy 1%TDS on properties above Rs 50 lakh would prove to be a major burden for both developers as well as customers especially in the metropolitan cities like Delhi and Mumbai and their outskirts as even small apartments in these areas cost more.  High interest rates and soaring land prices have been the major resistance factors in reviving the demand for housing stock and the budget could have announced a few long term steps aimed at improving the supply of land and reducing interest rates.”Mr. David Walker, Executive Director, SARE Homes

SARE Homes (South Asian Real Estate) is an FDI developer, offering quality, community housing at strategically identified locations across India. SARE Homes is committed to fulfilling the dreams of aspiring home owners by bringing an international lifestyle within their reach and offer its customers international standards of quality living, supported by an infrastructure of convenient amenities. SARE Homes has invested in 7 integrated projects in major cities across India thus far, namely Chennai, Gurgaon, Ghaziabad, Panvel, Indore and Amritsar, which represent approximately 39.8 million sq. ft. of developable area.