Realtors hope tax cut will boost demand for residential properties

Rajiv Talwar, chief executive at DLF, the country's largest listed property developer, said when there is more money in the hands of corporate entities and people, it will makes a difference

Demand for residential properties will get a boost after the cut in corporation taxes, said top property developers and consultants.

"Capital investment, which had stopped, will restart," said Niranjan Hiranandani, chairman at Hiranandani Communities. "When developers invest money, they will invest on new projects, which in turn generate employment. People will buy properties. There will be a multiplier effect." There was, however, "no room" to cut prices to boost demand, he added. 

Hiranandani said according to income tax rules, if a developer cuts prices by 5 per cent both the buyer and the seller have to pay a tax. 

With high prices and