+
Sharad Mittal, Director and CEO, Motilal Oswal Real Estate
Real Estate

Sharad Mittal, Director and CEO, Motilal Oswal Real Estate

Over the last six months, residential real estate has witnessed a strong recovery wherein almost all top cities are clocking record sales as compared to previous years. Customers and investors who had stayed away from residential real estate over the last four to five years are returning to the sector.

While some part of this recovery may be attributed to pent-up demand, developer discounts and temporary stamp duty waivers, a large part of it is on the back of fundamental factors such as multi-decadal low interest rates, bottomed-out pricing creating a room for price rise in future and a general increase in need for owning a home in light of Covid.

Return of this lost demand is imperative to the revival of residential real estate, which has been going through several challenges over the last four to five years due to a spate of regulatory reforms and funding crisis. The upcoming budget should focus on the revival of demand for real estate.

A key measure that can be introduced to boost end-user demand would be to increase eligibility limits on home values for affordable housing benefits from the current Rs 4.5 million to Rs 6 million. The move would expand the benefits of the affordable housing scheme to more homes.

Till 2017, the entire loss from deemed let out properties (second homes and thereafter) could be adjusted with income from all sources. That adjustment incentivised many people to invest in real estate for better tax planning. Restricting this limit to Rs 0.2 million in the 2017 budget created a drop in investor demand. Removing this limit in the upcoming budget would go a long way in bringing back lost investor demand.

Over the last six months, residential real estate has witnessed a strong recovery wherein almost all top cities are clocking record sales as compared to previous years. Customers and investors who had stayed away from residential real estate over the last four to five years are returning to the sector. While some part of this recovery may be attributed to pent-up demand, developer discounts and temporary stamp duty waivers, a large part of it is on the back of fundamental factors such as multi-decadal low interest rates, bottomed-out pricing creating a room for price rise in future and a general increase in need for owning a home in light of Covid. Return of this lost demand is imperative to the revival of residential real estate, which has been going through several challenges over the last four to five years due to a spate of regulatory reforms and funding crisis. The upcoming budget should focus on the revival of demand for real estate. A key measure that can be introduced to boost end-user demand would be to increase eligibility limits on home values for affordable housing benefits from the current Rs 4.5 million to Rs 6 million. The move would expand the benefits of the affordable housing scheme to more homes. Till 2017, the entire loss from deemed let out properties (second homes and thereafter) could be adjusted with income from all sources. That adjustment incentivised many people to invest in real estate for better tax planning. Restricting this limit to Rs 0.2 million in the 2017 budget created a drop in investor demand. Removing this limit in the upcoming budget would go a long way in bringing back lost investor demand.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?