devroop.dhar

This Budget should definitely bring real estate prices down a bit...Surely...!!

1. The market has shown a negative reaction towards the budget, and the feel good factor and the positive sentiment that had come in with this new Govt. is now gone. The builders were expecting this feel good factor to continue for them to continue at such high prices
2. Contrary to popular belief and expectation, no extra tax benefits have been given to citizens for investment in property. No change in tax exemption limit for repayment of loan etc
3. The change in the overall exemption limit is very marginal, and will not bring in much of a difference to the net disposable income of citizens
4. The overall thrust of the budget has been towards the rural sector, and not the urban sector. Which means many of the sops that the real estate companies were looking for may not come

So, home buyers need to judiciously weigh their decisions based on the changed economic scenario post budget. Lets hope that the prices actually and really and finally come down. It is still 2-3 times the 2003-2004 levels. I don't think incomes of people have gone up 2-3 times since 2003-04. Maybe a 50% appreciation in price since 2003-04 is fine, but not a 100% + one.

What do you all feel???