The contribution of affordable housing priced up to Rs 45 lakh in total home sales in 2021 fell to 43 per cent from 48 per cent in the previous year, while the share of units above Rs 75 lakh increased to 31 per cent from 25 per annum. cents, according to real estate advisor PropTiger.
In a report titled “Real Insight Residential – Annual Round-up 2021,” PropTiger said residential sales in eight top residential markets are up 13 percent in 2021 to 2,05,936 units, compared to 1,82,639 units in the previous year. .
According to the data, 43 percent of total home sales in India’s eight leading housing markets fell within the price range of Rs 45 lakh.
The share of units in the price range of Rs 45 lakh-Rs 75 lakh rose to 27 percent in 2021 from 26 percent in the previous year, while the share of apartments in the range of Rs 75 lakh to Rs 1 crore rose to 11 percent from 9 per cent.
The share of units costing more than Rs 1 crore rose from 16 percent to 20 percent.
The eight major cities are – Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune.
PropTiger said government policy support will fuel the appeal for affordable housing in India in 2021.
Under section 80EEA of the Income Tax Act, India offers its first-time home buyers an additional tax deduction of Rs 1.50 lakh if the unit is worth up to Rs 45 lakh. Such borrower can also claim subsidy under the government’s Pradhan Mantri Awas Yojana Program (PMAY).
“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 year,” he said. Dhruv Agarwala, Group CEO, Housing.Com, PropTiger.Com and Makaan.Com.
“We expect 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,” he added.
In light of the fact that the affordable housing segment is very crucial to the overall growth of the housing sector in India, Agarwala hoped that the government would consider extending these deadlines to maintain recovery momentum in India’s second largest job-generating sector. .
“The central government spending of Rs 48,000 crore 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’,” said Ankita Sood, Head of Research, Housing. Com, PropTiger.Com & Makaan.Com.
However, Sood said there is also a need to boost demand in the segment through tax credits, stamp duty exemptions and by raising the limits for homes to qualify as affordable housing in metro cities to further incentivize home buyers.
This post Affordable segment’s share of total home sales falls to 43% in 2021: PropTiger Report
was original published at “https://www.zeebiz.com/india/real-estate/news-affordable-segments-share-in-total-housing-sales-falls-to-43-in-2021-proptiger-report-181157”
