Increasing construction costs have increased property rates by 14% across cities on an average: Mr. Sudhir Pai, CEO, Magicbricks
According to our Research, India’s residential demand increased 19% YoY whereas supply increased only 2.8% YoY in 2022. Since residential demand remains high and unmet, the upcoming Budget presents a two fold opportunity. Firstly, to aid developers in delivering under-construction projects by providing access to affordable loans which would improve cash-flow. Secondly, since increasing construction costs have increased property rates by 14% across cities on an average, there is an opportunity to benefit homebuyers and developers alike, by increasing the price band for affordable housing. These provisions would unlock value for the residential sector and continue to fuel both demand and supply in the economy says- Mr. Sudhir Pai, CEO, Magicbricks
Although residential demand increased 19% YoY in 2022, macroeconomic dynamics such as rising inflation & interest rates on loans may create headwinds in the coming quarters. The budget can help sustain momentum and strengthen customer sentiment towards residential buying by considering provisions such as increasing the price band for affordable homes, especially in metros, which could benefit a larger segment of the society. Coupled with special additional tax relief for first time house buyers, these steps could create fresh demand and boost the vision of affordable housing for all. Relaxing the tax policy on long term capital gains from property sale can stimulate transactions in the sector and enabling set-off taxes on home loan interest payment would improve cash-flow with home buyers says- Hitesh Uppal, Head of Finance, Magicbricks.