When the Haryana government announced its annual budget recently, the media wrote that there was little to cheer about. The stories did not make front page headlines like the Union Budget did. However, as a real estate buyer, the important thing is to study the announcements made in the state budgets carefully. Remember, property and lands are state subjects. While the Union government has been trying to draft model Land and Rent Bills at the Central level, the truth is that land and real estate policy remain a state subject. Even the much awaited Real Estate Regulation Bill is only recommendatory from the Centre and the states have to implement their own versions for it to be applicable at the state levels.
So, what can you do as someone interested in the residential real estate? Check out announcements of the new growth areas such as industrial zones and townships. Property INVESTORS on the look-out for such properties would do well to track the growth of property along these corridors.
In Haryana, there have been allocations of Rs 3, 0883, 291 for roads and buildings and both urban and rural development allocations are substantial. The INVESTOR will benefit when the details of the allocations and the areas they are to be spent in are announced. Keep watching the announcements and make your decision accordingly. Any allocations to infrastructure will benefit end users. Roads, metros and connectivity normally push up real estate values. So, if you buy in an area that will get an infra boost, you stand to benefit.
Affordable housing too has benefitted from policy declarations. If you are working on a limited budget you will gain from Budget announcements about this category.
In the Andhra Pradesh budget 2015-16, for instance, there is an allocation of Rs 3, 168 for building the Capital City on 33,252 acres. Rs 2,960 crore have been allocated to Roads and Buildings and Rs 122 crore to the Transport Department. In addition, Rs 3, 168 crore has been allocated towards Urban Development and Rs 8, 212 crore towards Rural Development. Rural water supply got Rs 881 crore, while housing has an allocation of Rs 897 crore. Vijayawada and Visakhapatnam Metro Rail projects have an allocation of Rs 300 crore. It was also declared that Andhra Pradesh will become a developed state in the country by the year 2029. Disaster Management was awarded Rs 488 crore.
How should you read this information if you are a potential investor in Andhra Pradesh? You know there are big allocations to the two main cities Vijayawada and Vishakhapatnam. Metro routes are to be drawn and implemented latest by the year 2029. Urban and rural housing will get a push with budget allocations. All these impact property values, directly or indirectly. However, don’t be in a rush to put your money down. Follow the developments on the ground and buy property in those areas that come in the path of progress. That way you will be able to live comfortably or get a good return on your INVESTMENT.