ELECTIONS AND THE BUDGET
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.