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Budget 2024: Boosting Real Estate with Tax Rebates, Industry Status, and Affordable Housing

By GeoSquare News Desk · Published 2024-07-16

With the Union Budget 2024 just around the corner, stakeholders in the real estate sector are pinning their hopes on Finance Minister Nirmala Sitharaman to address their long-standing demands. The sector is seeking an increase in tax rebates on housing loan interest, industry status, and a redefined definition of affordable housing.

The housing sector is a significant contributor to India's GDP, but it has been facing several challenges in recent years, including a slowdown in sales, high inventory levels, and liquidity issues. The sector is hoping that Budget 2024 will provide a much-needed boost to revive the sector.

One of the key demands of the sector is an increase in tax rebates on housing loan interest. Currently, homebuyers can claim a tax rebate of up to Rs 2 lakh on housing loan interest. However, the sector is seeking an increase in this limit to Rs 5 lakh to encourage more people to invest in housing.

Another major demand of the sector is industry status. The real estate sector is one of the largest employment generators in the country, but it does not have industry status, which makes it difficult for developers to access funds at competitive rates. The sector is hoping that Budget 2024 will grant industry status to the sector, making it easier for developers to access funds and reduce their borrowing costs.

The sector is also seeking a redefined definition of affordable housing. Currently, affordable housing is defined as housing units with a carpet area of up to 60 square meters. However, the sector is seeking a revision in this definition to include housing units with a carpet area of up to 120 square meters. This will help to increase the supply of affordable housing units and make them more accessible to the middle class.

The real estate sector is also seeking other concessions, including a reduction in GST rates, relaxation of norms for Foreign Direct Investment (FDI), and a single-window clearance system for projects.

The sector is hopeful that Budget 2024 will address their demands and provide a much-needed boost to the sector. As the country's economy continues to grow, the demand for housing is expected to increase, and the sector is hoping to play a key role in meeting this demand.

About the National Real Estate Development Council (NAREDCO)
NAREDCO is a national-level organization that represents the real estate sector in India. It was established in 1998 and has over 5,000 members across the country. NAREDCO works closely with the government and other stakeholders to promote the growth and development of the real estate sector in India.

About the Confederation of Real Estate Developers' Associations of India (CREDAI)
CREDAI is a national-level organization that represents the real estate sector in India. It was established in 1999 and has over 12,000 members across the country. CREDAI works closely with the government and other stakeholders to promote the growth and development of the real estate sector in India.