Pre-election sops facilitates 10% increase in real estate sales
The government’s pre-election bonanza for residential real estate seems to have worked well, resulting in over 10 per cent increase in sales in the March quarter besides an upswing in new launches.
Conventionally, the period between the announcements of election dates till declaration of final results saw the real estate market move with caution as buyers adopted a wait-and-watch policy in anticipation that the newly elected government may offer some sops.
“Interestingly, 2019 is proving to be different. We estimate more than 10 per cent increase in sales across top seven cities in the first quarter of 2019, while new launches are estimated to see over 20 per cent rise”, AnujPuri, Chairman, ANAROCK Property Consultants.
This is largely due to the triple benefits offered by the government in less than just two months of 2019. The government doled out sops in the budget for developers undertaking affordable housing projects as well as measures to boost second home buys. It also reduced the GST rates on both affordable and premium housing, which was further propelled by a decline in home loan rates post RBI’s repo rate cut.