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How New Budget Will Impact the Rental Housing Sector in Ghaziabad?

How New Budget Will Impact the Rental Housing Sector in Ghaziabad?

If you are looking forward to renting a flat in Ghaziabad, stop right here before you have heard what the budget 2020-2021 has to say to you.

Our finance minister—Nirmala Sitharaman—came forward on the 1st of February, 2020, and announced a hefty share to the agriculture industry and allied developmental projects. Directly, the housing industry didn’t receive as much attention of the FM, as compared to the other industries; however, it did receive a boost.

Decoding the Budget for the Housing Sector

Though not under the direct impact, there are some of the underlying factors that can tell you whether you should own a house or rent a flat in Ghaziabad. Below are the aspects that you need to consider:

#1 Tax Exemption Came and Tax Payers Started Counting their Savings

The middle-class populace can sigh with relief, as the FM announced exemption in the tax. The revised tax slab is as below:

Tax Slab Current Rate New Rate
Rs 0-2.5 lakh Exempt Exempt
Rs 2.50-5 lakh 5% 5%
Rs 5-7.5 lakh 20% 10%
Rs 7.5-10 lakh 20% 15%
Rs 10-12.5 lakh 30% 20%
Rs 12.5-15 lakh 30% 25%
Rs 15 lakh and above 30% 30%

As we can see, the tax rate for individuals with an income of Rs. 5 lakh to Rs. 7.5 lakh has been slashed to half. Normally, individuals making an earning in this range are the middle-class demography, who consider owning a home as a milestone in one’s life.

How New Budget Will Impact the Rental Housing Sector in Ghaziabad?

Investing Property in Gaziabad 1

After having a bit more saving in hand, it is natural that they might consider investing in a property or at least upgrade their rental flat in Ghaziabad from 1 BHK to 2 BHK or higher or to prime locality.

#2 Increase in the Budget of Smart City Projects Indicating Development of Housing Projects

In the Union Budget 2020-2021, there has been an addition of five more cities, which are to be turned into smart cities. For the Smart City mission, the FM has allocated Rs. 6,450 crore. This budget will increase the number of facilities for a city, besides boosting the number of residential projects with high-end amenities.

With the ongoing development of sophisticated residential society and improved purchasing power, individuals are likely to get more inclined towards buying and renting a flat in Ghaziabad.

#3 Housing Sector Will Get Indirect Benefit from the Transportation Budget

The government is gradually striving to improve the reach of one place of the city to another, with a constant check on the time. There are a number of projects such as Delhi-Mumbai expressway that will create a lot of employment opportunities for the youths.

This implies that the urban sprawl from the smaller towns to the cities near Delhi, such as Ghaziabad will increase. As a result, the demand for residential projects and properties will increase. However, these are short-term projects for a couple of years. In such a case, individuals may not consider investing in a property, instead, they would see renting a flat in Ghaziabad as a sensible option.

The Sum and the Substance

Having analysed the budget and its impact on the rental housing sector, the demand for flats on rent will increase, and the property owners will have this pressure to offer amenities and facilities. If you are looking to rent a flat in Ghaziabad with good connectivity and affordability, contact us to get a list of rental properties.