How Zero Income Tax is Changing the Real Estate Market: The Shift from Flats to Open Plots Why Do People Buy Flats? We buy flats for two main reasons: 1.Personal Need – Simply put, a flat is where we live. 2.Tax Saving – The second flat? It’s often for tax benefits. Thanks to the home loan exemption, people bought a second flat even if they didn’t need it—just to save on taxes. How Tax Saving Has Impacted the Flats Market In the past, many bought a second flat primarily for tax savings. Even though flats depreciate in value over time, people didn’t mind because the tax exemption made it worth the investment. 80% of Indian Taxpayers Now Fall Under the Zero Tax Slab Here’s a game-changer: 80% of Indian taxpayers now fall under the zero tax slab! That means tax saving, which was the primary reason for buying a second flat, no longer has the same appeal. The need to buy flats just for tax benefits is fading away. The Post-Corona Housing Market Shift Post-Corona, Hyderabad’s housing market saw a shift. The affordable flats segment—flats in the range of 30 lakhs to 60 lakhs—is practically non-existent now. After prices soared, many who were planning to buy flats to save taxes are having second thoughts. Is it wise to spend 60 lakhs to one crore just for tax saving? Where Will the Real Estate Market Go from Here? With tax saving no longer the driving factor for flat purchases, open plots are set to gain huge popularity. Why? Because, now that people have more savings with zero tax, they want investments that will give them better long-term returns. Open plots in emerging locations are an attractive option—they don’t depreciate like flats do. Expect a surge in demand for open plots in Hyderabad’s suburbs and upcoming areas. These areas offer great investment opportunities at affordable prices, making them the perfect choice for those who want to shift away from flats. Written by Sai Plotify – Your Trusted Real Estate Partner – 9032 623 623 #saiplotify #zerotax #realestate #openplots #flats #taxsaving #hyderabadrealestate #investmentopportunities #propertyinvestment #openplotmarket #affordableplots #emerginglocations #suburbaninvestments #taxsavings #longterminvestment #hyderabadplots #realestatetrends #postcoronamarket #affordableinvestment