Property developers rush more launches in the sub-Rs 20 lakh

Property developers rush more launches in the sub-Rs 20 lakh category of homes, hard by yesterday’s Budget concession.

The central minister had said there would be an interest tribute of 1 per cent as only year on loans upping to Rs 10 lakh due to properties aid less than Rs 20 lakh. This is anticipated to relief this housing grain.

Developers such whereas Unitech, Omaxe, Puravankara, Lodha Developers and Ansal had under consideration moved into the sub-Rs 20 lakh category, as the economic downturn, coupled with fear of job losses and salary cuts, slowed sales of premium housing projects, lowering their finance flows.

”We will try to maintain to the integral demand that would arise after the government’s decision. Our Uni Homes project leave benefit from this project,” said R Nagaraju, general manager, corporate planning, Unitech, the country’s second biggest developer.

Unitech has recently introduced a new brand, Uni Homes, for low income projects in the Rs 10-30 lakh range and is planning to occasion tasks in seven cities, including Noida, Greater Noida, Chennai, bangalore and Kolkota. The first analogous project would serve announced next generation.

Ravi Ramu, director of Bangalore-based Puravankara, which has side with enlargement Provident Housing to launch affordable housing projects, stated the extra savings made by home loan debtors (due to the Budget decision) is expected to drive sales of its housing projects.

Provident is planning to launch a few thousand homes in the Rs 14.9-18.9 lakh category this week force Bangalore.

The company is planning to activate around 12 million sq ft of projects under this category this fiscal in many parts of the country, he talked about.

TheDelhi-based Raheja Developers and Mumbai-based Sunil Mantri Realty say they’re planning to begin 20,000 homes and 10,000 homes, respectively, in the sub-Rs 20 lakh categry in the next one year.

The FM’s announcement is expected to save Rs 60 whereas every Rs 1 lakh on a domestic loan borrowing per span.

„The announcement has blow in in at the right time, when sentiment in the estate market is turning positive and home buyers again investors are returning. With developers effectual to affordable housing from premium apartment also government announcing incentives, the effort is building. I think it is a good opportunity for developers to focus on this segment now,” said Sanjay Dutt, chief executive, business, at property consultancy Jones Lang LaSalle Meghraj.

However, developers are not enthused by the FM’s announcement to give charge holiday for developers under section 80 1B (10) of the IT fix on earnings from projects approved between April 1, 2007, and March 31, 2008.

„Tax holiday for 2007-08 is historical. We cannot take the benefits from this announcement for we have sold our initiatives. Otherwise, we would have tailormade our projects further handed on the benefits to buyers,” Ramu of Puravankara said

Courtesy:- tripe dt:- 29th July 2009

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