'Do not deny us our due'

Will the Budget proposals stimulate affordable housing?

It will certainly give an impetus to affordable housing but will not bring a turnaround as sops come along with certain caps. It will help boost housing sales in tier II and III cities, and metro suburbs, where the scope of constructing and selling affordable housing is more. The Budget proposal of additional tax deduction of Rs 1 lakh on home loans for first-time buyers will directly boost demand for affordable housing. This additional tax deduction can be carried forward to the next year in case the limit is not exhausted in the current year. With the ongoing interest rates of nearly 10.5 per cent, the total outflow for a loan amount of Rs 25 lakh would be Rs 3 lakh, of which, Rs 2.64 lakh (for first year) would be the interest outgo. The home buyer would get tax benefit equivalent to 95 per cent of the total interest burden, which was earlier only 57 per cent.

For FY13, the impact will be marginal. There is a substantial extent of home loans up to Rs 25 lakh in size — all the new sanctions will have to be deferred to the next year, as borrowers will not like to lose this significant benefit.

With this additional rebate for buyers, do you see an immediate spurt in demand for your projects?

We expect to see a rise in demand

... contd.