Demand for housing to rise due to additional tax sops in the Budget

23 Jul 2019 CW Staff

New housing supply fell 47 per cent to 37,852 units in nine cities due to liquidity crunch and general elections, the report by News Corp-backed property brokerage firm PropTiger said.

The nine cities covered in the report are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), Noida and Pune.

“While we saw a decline in both sales and launches in Q1 FY'20, the outlook is optimistic going forward. A stable government at the Centre and a Union Budget that announced several favourable measures for the residential real estate sector are likely to act as catalysts,” said Dhruv Agarwala, Group CEO of PropTiger, Housing.com and Makaan.com. He has added that traffic at the group’s all three portals increased during the April-June quarter, but it seems that people were on wait and watch mode because of general elections.

Agarwala expects housing demand to rise in the coming months on the back of the rise in the tax deduction limit on the interest payable on home loans to Rs 3.50 lakh for affordable homes from the current Rs 2 lakh limit, as announced in the Budget. “Additionally, several banks have lowered interest rates after the RBI reduced the repo rate to a record low. We are confident that these measures are likely to stimulate home sales in the coming quarters.”

According to the data, housing sales increased in four cities – Gurugram, Hyderabad, Kolkata and Pune – and declined in the remaining five.
•   Gurugram witnessed the highest increase of 32 per cent in housing sales at 4,951 units during April-June 2019 from 3,737 units in the year-ago period.
•   Housing sales in Hyderabad and Kolkata rose 10 per cent at 6,204 units and 3,481 units, respectively. Pune saw a 5 per cent rise in demand at 14,998 units.
•   However, Noida saw a steep 56 per cent decline at 3,304 units, followed by 36 per cent dip in Ahmedabad at 3,362 units, as per PropTiger.com’s ‘Real Insight Report’ for April-June 2019-20.
•   Sales in Bengaluru went down 17 per cent at 8,431 units, while demand fell 14 per cent in MMR at 22,652 units. Chennai saw a modest 2 per cent fall at 4,574 units during the period under review.

Housing sales fell 11 per cent in April-June 2019-20 across nine major cities to nearly 72,000 units but demand is expected to rise due to additional tax sops in the Budget for affordable homes and political stability at the Centre, as per the realty decoded report by PropTiger.New housing supply fell 47 per cent to 37,852 units in nine cities due to liquidity crunch and general elections, the report by News Corp-backed property brokerage firm PropTiger said.The nine cities covered in the report are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), Noida and Pune.“While we saw a decline in both sales and launches in Q1 FY'20, the outlook is optimistic going forward. A stable government at the Centre and a Union Budget that announced several favourable measures for the residential real estate sector are likely to act as catalysts,” said Dhruv Agarwala, Group CEO of PropTiger, Housing.com and Makaan.com. He has added that traffic at the group’s all three portals increased during the April-June quarter, but it seems that people were on wait and watch mode because of general elections.Agarwala expects housing demand to rise in the coming months on the back of the rise in the tax deduction limit on the interest payable on home loans to Rs 3.50 lakh for affordable homes from the current Rs 2 lakh limit, as announced in the Budget. “Additionally, several banks have lowered interest rates after the RBI reduced the repo rate to a record low. We are confident that these measures are likely to stimulate home sales in the coming quarters.” According to the data, housing sales increased in four cities – Gurugram, Hyderabad, Kolkata and Pune – and declined in the remaining five. • Gurugram witnessed the highest increase of 32 per cent in housing sales at 4,951 units during April-June 2019 from 3,737 units in the year-ago period.• Housing sales in Hyderabad and Kolkata rose 10 per cent at 6,204 units and 3,481 units, respectively. Pune saw a 5 per cent rise in demand at 14,998 units.• However, Noida saw a steep 56 per cent decline at 3,304 units, followed by 36 per cent dip in Ahmedabad at 3,362 units, as per PropTiger.com’s ‘Real Insight Report’ for April-June 2019-20.• Sales in Bengaluru went down 17 per cent at 8,431 units, while demand fell 14 per cent in MMR at 22,652 units. Chennai saw a modest 2 per cent fall at 4,574 units during the period under review.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..