The real estate market was having a low period for few years because of many financial policies and budget allocations. But, the new budget has had positive effects on the real estate sector. The builders and promoters developing apartments in Chennai are having a happy time after the release of the new budget. The buyers were also feeling reluctant in investing during the dull economy because of the fall in employment rates and many other issues.
The budget has given a positive face lift both on the builder’s and the buyer’s side. Increasing the taxable limit from Rs. 2 lakh to Rs. 2.5 lakh, enhancing the benefits in Section 80C from Rs. 1 lakh to Rs. 1.5 lakh, and raising the exemption limit on interest payments on housing loans from Rs. 1.5 to Rs. 2 lakh per annum will eventually leave more money in the hands of the tax payers. The savings gained from this cannot make a big difference to people living in cities like Delhi or Mumbai, but for a city like Chennai it will surely make a lot of difference.
There are a lot of choices in Chennai ranging from budget house to luxury villas which are mostly located in the areas like OMR, ECR and Velachery etc. The main reason for builders promoting flats in the suburban areas is to offer the first time buyers an opportunity to have homes in the fast developing residential areas. These areas include Perumbakkam, Medavakkam, Kovillambakkam, Vannagaram, Mangadu, Kundratur and Oragadam etc. These are localities that are expected to have enhanced demand after the budget announcements. Projects committing at least 30 percent of their total cost for affordable housing will now be exempted from minimum built-up area and capitalisation requirements. This has been done mainly to increase the provision for affordable housing which will benefit people who are looking for budget housing
