An apartment complex in Bhubaneswar. Telegraph picture

Bhubaneswar, July 10: Real-estate developers here feel that some of the pro-active steps taken in the first budget of the Narendra Modi government will definitely give a fillip to the housing sector, which is experiencing a major slowdown.

National joint secretary of the Confederation of Real-Estate Developers’ Association (India) D.S. Tripathy said that foreign direct investment (FDI) in real-estate would be a big help for the industry.

Arun Jaitley in his budget has scaled down the eligibility for FDI in real-estate.

Earlier, land requirement for attracting FDI was pegged at 5 lakh sqft, the NDA government’s budget has brought it down to a minimum of 2 lakh sqft.

This is a welcome decision, said a leading real-estate developer in the city.

“Development of 100 smart cities with an investment plan of Rs 7,600 crore will also ensure better housing and urban environment for all income groups. If Bhubaneswar or any other city in Odisha is included in the list then there will be a sea change in urban facilities. Better infrastructure and improved basic amenities will be a huge step forward,’’ said leading real-estate developer Anup Mohapatra of Versatile Construction.

“With a rise in the income tax slab and annual home loan interest component, apart from public bonds, the finance minister has made provisions for more savings. So working couples in the city can hope for more investment options in the real-estate sector in the future,’’ Mohapatra said.

While the city is growing vertically and at present there is a ready stock of around 18,000 nearly completed dwelling units, 15,000 are in want of customers, according to a conservative estimate.

In this situation, the budget announcements may help the sector to overcome recession within a period of two-three years.