Pankaj Kapoor of property research firm Liases Foras said it will only provide only — marginal relief for first time buyers. "The rebate should have been much higher," he said. "In Mumbai, the average cost of a flat is Rs 1.20 crore. On this, the monthly EMI itself would be around Rs one lakh, of which 80% goes towards interest. This exemption is not enough to promote housing," he said.
Property consultant Ashok Narang said the move will benefit the salaried-class to some extent. "But flat buyers in two-tier cities where prices are comparatively much lower will feel the difference," he said.
Abhisheck Lodha, managing director of Lodha Group said the increase won't change anything for flat buyers in big cities like Mumbai. "But it is an incremental difference for homes in the range of Rs 25 lakh to Rs 50 lakh, which are available in the Mumbai metropolitan region,'" he said.
Added Pranay Vakil of Praron Consultancy, "If you want to encourage housing, no matter what interest you are paying, it should be exempted from taxation. It's a basic need."
Developer Boman Irani said the budget proposal allowing corporate social responsibility (CSR) in slum redevelopment would create a big impact in Mumbai, where half the population live in shanties. "Big companies could pump in at least a couple of thousand crores in slum projects," he said.
http://timesofindia.indiatimes.com/followceleb.cms?alias=Pankaj Kapoor,Ashok Narang,Property consultant,Lodha group,EMI
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