Once a hotbed for real estate investments, NCR is now among the worst hit by the real estate crisis with a whopping five lakh flats stalled in various stages of completion but paid for by homebuyers, according to multiple estimates.

The Union Budget 2019-20 has not brought cheer to homebuyers of Delhi-NCR as they had pinned their hopes on relief for housing projects that are stuck rather than the enhanced deduction on housing loan interest that finance minister Nirmala Sitharaman announced on Friday.

Once a hotbed for real estate investments, NCR is now among the worst hit by the real estate crisis with a whopping five lakh flats stalled in various stages of completion but paid for by homebuyers, according to multiple estimates. Delhi-NCR homebuyers said not many will benefit from the deduction on home loan interest as there is no money to invest in a new house.

Further, the budget announcement benefits only buyers of affordable houses, they said. “We were expecting a lot from this government which came with the full majority but nothing has been done for those whose lifetime savings are stuck with flat developers,” said a Noida Extension Flat Owners Welfare Association general secretary. “The government should come up with some financial relief to developers and buyers. Buying, selling and rentals are all down,” said homebuyer Krishna Mitroo.

The budget has proposed to increase the deduction that can be claimed for interest paid on loans taken for affordable housing by Rs 1.5 lakh to Rs 3.5 lakh per annum for houses valued up to Rs 45 lakh. The deduction is available on loans taken up to March 31, 2020. This will provide a total benefit of Rs 7 lakh over a loan period 15 years.

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