Industry hopes for tax breaks to propel housing market sentiments

New Delhi: After a splendid performance of the realty segment of India in 2021, experts have said that an uninterrupted positive momentum for the housing market can be assured, by minimising the threat of the Covid-19 new variant, Omicron.

Pritam Chivukula, Secretary, Maharashtra Chamber of Housing Industry (MCHI) Credai, has predicted in the following financial quarters that the housing segment is expected to perform well in the early part of the New Year. He also said that the realty giants are anticipating that the government would extend relaxations and incentives to further benefit the industry.

"Incentives like the Introduction of tax benefits will help in increasing public spending with less transaction cost. Various supply and demand patterns assessed over the last decade have already started putting upward pressure on residential property prices," said Chivukula.

Navin Makhija, Managing Director, The Wadhwa Group has said that realty comapnies are heavily banking on the government to float incentives in the Financial Year of 2022-23 by introducing tax breaks which may increase public spending, lessen transaction cost.

In the luxury housing segment, the uptake has increase in 2020 and 2021, with builders crediting the change in housing needs and lifestyle for the growing preference amongst potential buyers. Shraddha Kedia-Agarwal, Director, Transcon Developers, has said that enactment of The Real Estate (Regulation and Development) Act (RERA) has ensure transparency which has further enabled 100 percent FDI in construction.

She says that Indian real estate is witnessing sharp investment infusions from NRIs. "The new class of ultra-rich people is on a buying spree of luxury homes in global cities such as Mumbai and Bangalore. With a huge part of the vulnerable population already vaccinated, the Indian markets are proving their grit and potential, it is now time for investors to decide if they want to benefit from India's future potential," she said.