Statement from Neeraj Bansal, Head of Real Estate and Construction, KPMG in India

Neeraj Bansal, Head of Real Estate and Construction, KPMG in India

“Modi Government’s first full budget is a strong statement of direction – indeed a forward looking budget with pro-growth and pro-business being the underlying themes. The infrastructure sector will get a boost with clarity and tax incentives, which will have a cascading, but gradual impact on the real estate demand and also support the positive sentiment. For the real estate sector, while the proposed rationalization of capital gains tax regime for sponsors of REIT and pass-through status for rental income from owned assets is a welcome move, the Budget 2015 falls short on the industry’s many expectations on affordable housing front.”