Finance minister P Chidambaram's incentive to first-time home loan takers has come as a boon to the real estate developers who have been saddled with a growing pile of unsold stock over the past two years.The industry expects the proposed incentive in the budget, by way of additional tax deduction on interest of up to 1 lakh on a loan of up to 25 lakh, to spur demand, especially in the 30-40 lakh category.Of the 583,513 unsold apartments across the country, 39% cost less than 35 lakh. In the national capital region, 50% of the unsold apartments are in this segment while the figure is 30% in Mumbai, according to property research firm Liases Foras. In 2012, 42% of homes sold in the country were in this category, with buyers taking a loan of 25 lakh on average.In the national capital region, developers say the budgetary proposal has already led to increased interest among potential buyers in Raj Nagar Extension in Ghaziabad, Noida Extension in Greater Noida and along the Yamuna Expressway.

Source - http://economictimes.indiatimes.com