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.
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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.
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