Indian real estate sector, which is trying to revive from the slump it witnessed in 2008, received a boost from Union Budget 2010-11.

To encourage affordable housing, Finance Minister Pranab Mukherji, in his budget, extended the interest subvention scheme of one per cent on individual housing loans up to Rs. 10 lakh to all units that cost below Rs. 20 lakh. The sector being interest sensitive, would be helped by in increasing demand by reducing EMI and affordability.

Demand will also get a support from the substantial reduction in personal income tax announced in the budget.

However, the industry's demand for some relaxation on the tax deduction on housing loans and industry status for township projects were overlooked by the FM.

Industry players, who currently have delayed 80IB (10) eligible projects, also got a relaxation in the budget as the FM allowed them one more year to complete their projects. Now they can complete those projects in five years in stead of four years as specified earlier.

But the industry also received a hit from the budgets as excise on key raw materials including cement, steel, PVC pipes and ceramic tiles were hiked by the Finance Minister.