ELEC­TIONS AND THE BUD­GET

HT Estates - - HTESTATES -

Eco­nomic sen­ti­ment took a big U-turn post the gen­eral elec­tion, and more so after the first union Bud­get of the newly-elected gov­ern­ment. The cash­starved realty sec­tor fi­nally got due at­ten­tion from the union gov­ern­ment as new ways to raise funds were in­tro­duced.

More­over, in­creas­ing tax sops on the pur­chase of new homes will ben­e­fit the Chen­nai realty mar­ket sig­nif­i­cantly. The dom­i­nant em­ployer in the re­gion – the IT/ITeS sec­tor – has sig­nalled op­ti­mism for business in the fi­nan­cial year 2015. Con­sid­er­ing th­ese fac­tors, after a slow uptick in the first half, new launches and ab­sorp­tion are es­ti­mated to in­crease by 31% and 14% re­spec­tively in the sec­ond half of 2014, com­pared to the same pe­riod last year. How­ever, de­spite a stead­ier sec­ond half of 2014, the Chen­nai res­i­den­tial mar­ket would con­tinue its de­clin­ing trend on an an­nual ba­sis.

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