The budget for 2014-15 has given quite a few incentives for the real estate sector despite the fiscal constraints. The rebate on interest paid on home loans has been raised by 50,000 rupees to two lakhs rupees per annum while exemption under section 80C has also been raised to 1.5 lakh rupees from one lakh rupees. This means that home buyers can also utilize the higher limit under 80C to account for the principal repayment on their home loans. Given the government’s commitment to fiscal discipline, we now expect the RBI to start gradually reducing interest rates and a combination of tax incentives and lower home loan rates will surely give a much needed fillip to housing sector. A beginning has also been made in the area of low cost housing with the budget setting aside 4,000 crore rupees under National Housing Bank. We now need more details on how this money will be used but given that India needs 25 million more dwellings, the scope for low cost housing is immense. There is also much needed clarity on tax status of REITS with the budget announcing pass through tax status that has addressed the issue of double taxation. Now we expect SEBI to quickly come out with the final norms and once REITS are introduced, we can be hopeful of lot of investment and more transparency coming in the sector. Perhaps the only disappointment is that the housing sector has not been given infrastructure status but we are hopeful it will surely come at a later date. Also, we acknowledge that the government recognises the proposals of the housing industry and plans to open a dialogue to achieve mission 2022 housing for all.