Boosting India's Housing Market: Developers Seek Tax Incentives and Industry Status in Budget 2024
The Indian housing sector is looking forward to the Union Budget 2024, expecting tax reliefs and other sentiment boosters to stimulate growth in the market.
Housing MarketBudget 2024Real EstateTax IncentivesIndustry StatusReal Estate NewsJun 20, 2024
The Indian housing sector has remained upbeat in 2024, with housing sales and new launches creating new peaks in the top 7 cities. However, the current growth trajectory is skewed towards mid-range and premium housing, and the sector's momentum cannot ride solely on higher-priced homes while affordable housing continues to languish.
Developers and experts expect the budget to provide tax reliefs and other sentiment boosters to stimulate growth in the housing market. They anticipate announcements that will encourage capital investments and increase foreign direct investment (FDI) inflows into India, and emphasize the need for industry status to unlock legal and administrative benefits, along with tax incentives.
Many interest stimulants previously extended to buyers and developers of affordable housing have expired in the last two years, and this important segment must be revived with high-impact measures like tax breaks. The government's focus on affordable housing under PMAY is commendable, but recalibrating strategies in light of escalating construction costs is imperative for sustained inclusiveness and effectiveness.
Developers also expect the budget to tackle pressing issues, boost demand, and drive sustainable growth. They believe that the real estate sector is poised to contribute meaningfully to India's journey towards a 5-trillion-dollar economy, but it requires support from the government.
ANAROCK Group is a leading real estate consultancy firm in India. India Sotheby's International Realty is a luxury real estate services provider. Square Yards is a leading real estate advisory and investment services firm. Vestian is a boutique real estate consultancy firm. Krisumi Corporation is a leading real estate development company.
Information
The Indian housing sector has been growing steadily, with sales reaching an all-time high at about 4.93 lakh units in FY23-24, while 4.47 lakh units were launched. The government has announced the construction of 3 crore new units under PMAY, showing its commitment towards the real estate sector.
Frequently Asked Questions
What are the expectations from the real estate sector in Budget 2024?
The sector expects tax reliefs, industry status, and measures to boost demand and drive sustainable growth.
Why is affordable housing important for the Indian housing sector?
Affordable housing is crucial for the sector's growth, as it caters to the needs of lower-income groups and stimulates demand.
How can the government support the real estate sector?
The government can provide tax incentives, industry status, and other benefits to support the sector's growth.
What is the significance of the Pradhan Mantri Awas Yojana (PMAY) scheme?
PMAY is a government scheme aimed at providing affordable housing to all, and has been instrumental in driving growth in the sector.
How can the real estate sector contribute to India's economic growth?
The sector can contribute significantly to India's economic growth by creating jobs, stimulating demand, and driving economic activities.
Related News Articles
Get Residency in 10 Countries by Investing in Real Estate
Discover 10 countries that offer residency to foreign investors through real estate investment programs
Curated Living Solutions Partners with BNMV Trust for 10-Year Lease on Student Living Project in Mumbai
Real estate consultant JLL facilitated the collaboration between CLSPL and BNMV Trust for a 10-year lease on a student living project in Mumbai’s Juhu area.
Shraddha Kapoor Bags Luxurious Mumbai Apartment for Rs 6 Lakh Monthly Rent
Bollywood actress Shraddha Kapoor, fresh off the heels of her starrer 'Stree 2', has added a new property to her portfolio by renting a premium flat in Mumbai's Juhu for a steep Rs 6 lakh per month. The flat, spanning 3,929 sq ft, comes with a luxury base
Satara Judge Among Four Accused in ₹5 Lakh Bribery Case
A District and Sessions Judge in Satara has been booked along with three others for allegedly demanding a bribe of ₹5 lakh. The case has sent shockwaves through the legal community and highlights the ongoing struggle against corruption in the judicial sys
RBI Rate Cut: How Much Can You Save on Your Home Loan EMI for Rs 30 Lakh Over 20 Years?
The recent rate cut by the Reserve Bank of India (RBI) is expected to bring a welcome relief to home loan borrowers. Real estate activity is also anticipated to increase, according to Sandeep Mangla, the Managing Director of Forteasia Realty Pvt. Ltd. Fin
Israel's Real Estate Brokerage Reform Takes Effect
On Sunday, a new reform in the Israeli real estate brokerage sector, led by the Ministry of Justice, came into effect, marking a significant change in the industry.