Tax Exemption Boosts Housing Demand in Tier 2 Cities, Supply Yet to Catch Up
The recent Union Budget’s income tax exemption for individuals earning up to ₹12 lakh annually is expected to boost demand for affordable housing, particularly in Tier 2 cities. While sales continue to rise, a supply crunch due to fewer new project launches remains a challenge. Experts suggest that reinstating the 100% tax deduction on profits from affordable housing projects under Section 80-IBA could help bridge the gap between demand and supply, ensuring balanced market growth.
