Housing.com CEO says Budget must consider 'strong case for interest subsidy to first-time homebuyers'

     Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com

"Despite the rise in interest rates on home loans by more than two percentage points over the past year, housing sales have remained strong in 2022, in large part, because of the pent-up demand from the previous two years impacted by the Covid-19 pandemic.

To sustain this demand, the real estate sector needs some fiscal support in the upcoming budget.

There is a strong case for interest subsidy to first-time homebuyers as this will boost sales in the real estate sector, which is not only the second biggest employer in the country but also creates demand for two hundred other industries including cement and steel.

The Finance Minister should also consider the industry’s long-pending demand for an increase in tax incentives for both principal and interest paid on home loans by borrowers. There is also a need to enhance the corpus of the stress fund SWAMIH from Rs. 15000 crore to at least Rs 50,000 crore to ensure that more stalled projects get completed. This will go a long way in rebuilding the trust of homebuyers in the residential real estate market."