Boosting Real Estate: Expectations from Budget 2024
The real estate sector seeks tax reforms, increased demand for homeownership, and benefits for homebuyers and investors.
Budget 2024Real EstateHomeownershipTax BenefitsAffordable HousingEase Of Doing BusinessReal EstateJul 02, 2024
The Indian real estate sector continues to grow, driven by positive market sentiments, economic growth, urbanization, and government policies. Homeownership demand remains strong, with residential sales reaching new highs. However, the sector is seeking more than just single-window clearance and industry status; it wants tax benefits, reduced GST on under-construction properties, and adjusted raw material pricing.
Ramani Sastri, Chairman & MD of Sterling Developers Pvt. Ltd., emphasizes the need for more tax benefits for homebuyers and investors. 'Raising the deduction limit for interest payments on home loans from Rs 2 lakh to Rs 5 lakh will boost housing demand and increase investment in residential real estate,' he said. Expanding the definition of affordable housing and offering tax exemptions on rental income will also encourage greater investment.
The sector is also seeking ease of doing business, with announcements that enhance the ease of doing business for developers, stimulate demand, address liquidity concerns, and simplify regulations. This will drive growth in the real estate sector and boost demand in related industries, creating jobs across sectors.
Reviving schemes like the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund and the Credit-Linked Subsidy Scheme (CLSS) under PMAY will improve liquidity and support affordable housing. Reintroducing a 100% tax holiday for affordable housing developers and updating the definition of affordable housing are also crucial.
Streamlined approval processes, digitization in land records, and incentives for green building practices will reduce project delays, promote sustainable development, and attract investments.
The real estate sector is hoping for policy measures that promote sustainable growth, address key challenges, and drive urban regeneration. With the budget just around the corner, the sector is eagerly awaiting reforms that will benefit taxpayers and stimulate growth.
Frequently Asked Questions
What is the real estate sector seeking from Budget 2024?
The sector is seeking tax reforms, increased demand for homeownership, and benefits for homebuyers and investors.
What is the current state of the Indian real estate sector?
The sector is growing, driven by positive market sentiments, economic growth, urbanization, and government policies.
What are the tax benefits being sought by the real estate sector?
The sector is seeking a raise in the deduction limit for interest payments on home loans from Rs 2 lakh to Rs 5 lakh and tax exemptions on rental income.
What are the initiatives being sought to promote affordable housing?
The sector is seeking the revival of schemes like SWAMIH and CLSS, a 100% tax holiday for affordable housing developers, and an updated definition of affordable housing.
What are the benefits of streamlined approval processes and digitization in land records?
Streamlined approval processes and digitization in land records will reduce project delays, promote sustainable development, and attract investments.
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