The Budget 2016 has given a boost to rental housing

The Union Budget for 2016-17, presented by finance minister, seeks to boost the rental housing market by increasing the House Rent Allowance (HRA) deductions. This will be beneficial for those who don't own a house and does not receive any HRA from their employers, as they can now avail a standard deduction of Rs 24,000; while for those availing HRA, the limit has been raised to Rs 60,000 per annum towards rent paid for their accommodation.

There are many tech-based start-ups offering a plethora of online services. These brokers offering online services along with various web portals easing the process of house hunting and rental agreement online, expect an average growth by 20-30% after the Budget 2016. ServaSeva, a NPS Technologies product, an Authorised Service Provider for rental agreement (ASP) director, Deepak Thakur says "This year budget is reviving housing demands of middle class as compared to last year. Post launch in November 2015, we have been providing online registration of Leave and Licenses Agreement to 100 citizens every month and advisory to over 1000 citizens. This year we are expecting to serve over 1000 citizens monthly and advisory to over 10000 citizens every month."

Sonam Doshi, team manager at a leading BPO says, "I am very happy with the budget presented this year. I have recently moved to a 2 BHK in Malad and got my paper registration of leave and licenses agreement done through the online portal by ServeSeva. I am also encouraging few of my friends, to shift to a closer proximity to office with a hassle free service and with the new limit, we can surely rent a house that will fit our pocket."

This budget has boosted the innovative models for development of citizen friendly environment in Rental agreement landscape. Companies like Serveseva who have been focused on bringing new age experience to citizens, are in a strong position to launch better service and new solutions to citizens at their doorstep due to the enabling environment and citizen benefit.

Source : Equity Bulls

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