Budget 2020: Housing demand may feel squeeze despite sops, say experts

Knight Frank's Baijal said unless demand picks up across all price segments, there won't be any real recovery in real estate

With exemptions gone under the new income-tax regime, housing developers could see demand challenges in residential properties, said experts.

Shishir Baijal, chairman of Knight Frank, said the real issue is how to spur demand in housing. “With exemptions gone (under the new tax regime), there is no incentive to buy homes. Generating demand will be a big issue,” he said.

While simplifying the tax regime, the finance minister said many of the tax exemptions would go. Analysts said there is confusion on exemption on home loan interest.

“The February Union Budget 2020-21 raises questions about the impact of doing away