After languishing for five-six years, the luxury housing segment revived during and after the pandemic. According to data from Anarock Research, average prices across luxury micro-markets have jumped 7 to 21 per cent between 2019 and 2022. The question is whether the change proposed in the Budget to Section 54 and 54F, capping the deduction at Rs 10 crore, will stall the revival.
Desire to upgrade drove revival
One factor responsible for the revival in the luxury segment was the increase in demand for larger houses during and after the pandemic. Due to work from home, many people felt the need to upgrade to a house with an extra room.