The policy support by the government is promoting affordable homes in the country, thereby increasing the supply as well as the annual sales of flats. This information has come out from the report of online real estate brokerage firm PropTiger.com.
PropTiger.com, citing data, said that 43 percent of total home sales in India’s eight major housing markets were under the Rs 45 lakh denomination, which is the government subsidy on the purchase of certain homes in India. necessary to take advantage of. According to the company’s report Real Insight Residential – Annual Round-up 2021, home sales in India’s eight major residential markets grew by 13 percent in 2021 compared to total sales in 2020.
Under Section 80EEA of the Income Tax Act, India offers an additional tax deduction of Rs 1.50 lakh to first-time home buyers if the value of the house is up to Rs 45 lakh. The buyer can also claim subsidy on the loan under Pradhan Mantri Awas Yojana Program (PMAY) Gramin. In a country where home ownership has traditionally been important to families, this concept has gained further strength following the coronavirus pandemic. During the pandemic, even younger millennials and Generation-Z, who are more inclined towards rental homes or properties, have come to know the value of home ownership.
According to PropTiger, the bracket up to Rs 45 lakh also contributed to 41 per cent of the annual new supply in these eight markets in 2021. A total of 2.14 lakh units were launched in these markets in 2021, up 75 per cent, as compared to 1.22 lakh units in the previous year.
The residential markets analyzed included Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune. The company’s Group CEO Dhruv Agarwal said that apart from government subsidies, low interest rates on home loans have also been a major factor in the sale of homes in the country in 2021, even as the economy is slowly recovering from the second phase of the pandemic during the year. He was overcome by the shock of the wave. We expect to see more rapid activity in the residential market in 2022.