Demand for housing to rise due to additional tax sops in the Budget
23 Jul 2019
3 Min Read
CW Staff
Housing sales fell 11 per cent in April-June 2019-20 across nine major cities to nearly 72,000 units but demand is expected to rise due to additional tax sops in the Budget for affordable homes and political stability at the Centre, as per the realty decoded report by PropTiger.
New housing supply fell 47 per cent to 37,852 units in nine cities due to liquidity crunch and general elections, the report by News Corp-backed property brokerage firm PropTiger said.
The nine cities covered in the report are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), Noida and Pune.
鈥淲hile we saw a decline in both sales and launches in Q1 FY'20, the outlook is optimistic going forward. A stable government at the Centre and a Union Budget that announced several favourable measures for the residential real estate sector are likely to act as catalysts,鈥� said Dhruv Agarwala, Group CEO of PropTiger, Housing.com and Makaan.com. He has added that traffic at the group鈥檚 all three portals increased during the April-June quarter, but it seems that people were on wait and watch mode because of general elections.
Agarwala expects housing demand to rise in the coming months on the back of the rise in the tax deduction limit on the interest payable on home loans to Rs 3.50 lakh for affordable homes from the current Rs 2 lakh limit, as announced in the Budget. 鈥淎dditionally, several banks have lowered interest rates after the RBI reduced the repo rate to a record low. We are confident that these measures are likely to stimulate home sales in the coming quarters.鈥�
According to the data, housing sales increased in four cities 鈥� Gurugram, Hyderabad, Kolkata and Pune 鈥� and declined in the remaining five.
鈥� Gurugram witnessed the highest increase of 32 per cent in housing sales at 4,951 units during April-June 2019 from 3,737 units in the year-ago period.
鈥� Housing sales in Hyderabad and Kolkata rose 10 per cent at 6,204 units and 3,481 units, respectively. Pune saw a 5 per cent rise in demand at 14,998 units.
鈥� However, Noida saw a steep 56 per cent decline at 3,304 units, followed by 36 per cent dip in Ahmedabad at 3,362 units, as per PropTiger.com鈥檚 鈥楻eal Insight Report鈥� for April-June 2019-20.
鈥� Sales in Bengaluru went down 17 per cent at 8,431 units, while demand fell 14 per cent in MMR at 22,652 units. Chennai saw a modest 2 per cent fall at 4,574 units during the period under review.
Housing sales fell 11 per cent in April-June 2019-20 across nine major cities to nearly 72,000 units but demand is expected to rise due to additional tax sops in the Budget for affordable homes and political stability at the Centre, as per the realty decoded report by PropTiger.New housing supply fell 47 per cent to 37,852 units in nine cities due to liquidity crunch and general elections, the report by News Corp-backed property brokerage firm PropTiger said.The nine cities covered in the report are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), Noida and Pune.鈥淲hile we saw a decline in both sales and launches in Q1 FY'20, the outlook is optimistic going forward. A stable government at the Centre and a Union Budget that announced several favourable measures for the residential real estate sector are likely to act as catalysts,鈥� said Dhruv Agarwala, Group CEO of PropTiger, Housing.com and Makaan.com. He has added that traffic at the group鈥檚 all three portals increased during the April-June quarter, but it seems that people were on wait and watch mode because of general elections.Agarwala expects housing demand to rise in the coming months on the back of the rise in the tax deduction limit on the interest payable on home loans to Rs 3.50 lakh for affordable homes from the current Rs 2 lakh limit, as announced in the Budget. 鈥淎dditionally, several banks have lowered interest rates after the RBI reduced the repo rate to a record low. We are confident that these measures are likely to stimulate home sales in the coming quarters.鈥� According to the data, housing sales increased in four cities 鈥� Gurugram, Hyderabad, Kolkata and Pune 鈥� and declined in the remaining five. 鈥� Gurugram witnessed the highest increase of 32 per cent in housing sales at 4,951 units during April-June 2019 from 3,737 units in the year-ago period.鈥� Housing sales in Hyderabad and Kolkata rose 10 per cent at 6,204 units and 3,481 units, respectively. Pune saw a 5 per cent rise in demand at 14,998 units.鈥� However, Noida saw a steep 56 per cent decline at 3,304 units, followed by 36 per cent dip in Ahmedabad at 3,362 units, as per PropTiger.com鈥檚 鈥楻eal Insight Report鈥� for April-June 2019-20.鈥� Sales in Bengaluru went down 17 per cent at 8,431 units, while demand fell 14 per cent in MMR at 22,652 units. Chennai saw a modest 2 per cent fall at 4,574 units during the period under review.
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
