Phoenix soared 7.1 per cent to Rs 801 on the BSE. Indiabulls Real Estate climbed 5.71 per cent to Rs 78.70. Prestige Estates advanced 4.57 per cent to Rs 279.20. Godrej Properties, Oberoi Realty and Sobha rose up to 3 per cent each.
“As anticipated, affordable housing and rental housing got a big boost with the government extending the period for extra deduction of Rs 1.5 lakh available for loans up to March 31 2022. This will keep demand buoyant for affordable housing in 2021 as well,” said Anuj Puri, Chairman at ANAROCK Property Consultants.
“Further, the extension of the tax holiday for affordable housing projects for one more year will help bring in more new supply within this segment. As per ANAROCK Research, affordable housing already accounts for more than 35 per cent of the supply across the top seven cities in the country,” Puri said.
The increase in time limit for affordable housing projects deduction and additional interest on loans borrowed for affordable housing will compensate the time lost due to the pandemic, said Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP.
The increased focus on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector too, said,” Ankush Kaul, President – Sales & Marketing – Ambience Group said.
“A good infrastructure could propel the development of real estate, both commercial and housing, along the transit corridors, highways and newly-proposed airports,” he added.