The government s decision to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Budget will boost demand for residential properties, according to real estate developers and consultants. However, builders were disappointed as the finance minister did not consider many demands, including industry/infrastructure status, single-window approval for projects, input tax credit on GST and extra allocation in stress fund. The chairman of realtors apex body CREDAI, Jaxay Shah, said this will boost overall demand for affordable housing, the fastest growing segment for the real estate sector. The proposed amendments to allow debt funding through REITs would help in attracting more investments in real estate sector, CREDAI President Satish Magar said, adding that the proposal to make dividend payments to REIT exempt from TDS would encourage retail investors to explore investment opportunities in REITs
Developers build hopes on uptick in residential sales
December 29, 2020
Discounts, delayed EMI payment, stamp duty waiver, among other factors, may draw home buyers
As 2020 comes to an end and businesses restart in the new normal, real estate developers are hoping that 2021 will deliver “good news” in terms of both residential and office absorption.
Low interest rates and government intervention have been welcome moves so far. The trends that have emerged over the last couple of months (October and November) in residential sales look “encouraging” too and specific markets such as Mumbai, Pune, Hyderabad and Chennai are reporting improvements.
Signs of revival