43% of total home sales in India’s eight major housing markets fell within the price range of Rs 45 lakh, a maximum that is essential to take advantage of certain government subsidies for the purchase of homes in India.
Government policy support fueled the pull for affordable homes in India in 2021. This in turn helped the world’s second most populous nation register a jump in annual home sales and supply, according to PropTiger.com.
In fact, 43% of total home sales in India’s eight major housing markets fell within the price range of Rs 45 lakh, a maximum that is essential to take advantage of certain government subsidies for the purchase of homes in India. According to a report from PropTiger titled Real Insight Residential – Annual Round-Up 2021′, home sales in India’s top eight housing markets increased by 13% in 2021, compared to total sales in 2020.
Under section 80EEA of its Income Tax Act, India offers its first-time home buyers an additional tax deduction of Rs 1.50 lakh if the unit has a value of up to Rs 45 lakh. Such borrower can also claim grant under the Pradhan Mantri Awas Yojana Program (PMAY).
In a country where home ownership has historically been important to families, the concept has gained popularity following the coronavirus pandemic, where the importance of your home as your one and only safe haven became apparent. During the pandemic, even the younger millennials and Generation Z, who are more prone to rental properties, recognized the value of homeownership.
According to PropTiger.com, the price range up to Rs 45 lakh also contributed 41% to annual new supply in these eight markets in 2021. In 2021, a total of 2.14 lakh units were launched in these markets compared to 1.22 lakh units. units in the previous year, up 75%.
The residential markets covered in the analysis are Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune.
“In addition to government subsidies, record low interest rates on home loans were a major driver of home sales in the country in 2021, even as the economy slowly recovered from the shock of the second wave of the pandemic during the course of the year. We expect to see more intense activity in the housing market in 2022, especially in the affordable housing segment, as several deadlines to take advantage of the government subsidies come to an end,” said Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com. & Macaan. com.
“In light of the fact that the affordable housing segment is critical to the overall growth of the housing sector in India, we hope that the government will consider extending these deadlines to maintain recovery momentum in India’s second-largest employment-generating sector Agarwala added. †
“The expenditure of Rs 48,000 crore by the central government to increase the supply in the affordable housing segment in both rural and urban areas is a welcome step that will accelerate the vision of ‘Housing for all’. However, in addition to boosting supply, there is also a need to boost demand in the segment through tax credits, stamp duty exemptions and raising the limits for housing to qualify as affordable housing in metro cities to help homebuyers further. to boost,” said Ankita Sood, Head and Research Housing.com, PropTiger.com & Makaan.com.
This post Affordable housing incentives a key factor behind India’s real estate revival: report was original published at “https://www.financialexpress.com/money/incentives-on-affordable-housing-a-key-factor-behind-property-market-revival-in-india-report/2461557/”