Budget 2024: Real Estate Sector's Wish List Ahead of FM Nirmala Sitharaman's Announcement
The real estate sector has several demands ahead of the union budget 2024, including tax rebates, industry status, and a redefinition of affordable housing.
Real EstateBudget 2024Tax RebateIndustry StatusAffordable HousingReal EstateJul 16, 2024
One of the key demands from the sector is an increase in tax rebates on housing loan interest. Currently, homebuyers can avail a tax rebate of up to ₹2 lakh on interest paid on housing loans. However, with rising property prices and increasing loan amounts, this limit has become insufficient. The sector is demanding that the government increase this limit to ₹5 lakh or more, to provide some relief to homebuyers.
Another demand from the sector is industry status. The real estate sector is one of the largest contributors to India's GDP, but it is still not recognized as an industry. This lack of recognition means that the sector does not have access to low-cost funds, and is often at the mercy of private lenders who charge exorbitant interest rates. Industry leaders are hoping that the government will grant industry status to the sector, to enable it to access low-cost funds and reduce its dependence on private lenders.
The sector is also demanding a redefinition of affordable housing. Currently, homes priced up to ₹45 lakh are classified as affordable housing. However, with rising property prices, this limit has become outdated. The sector is demanding that the government increase this limit to ₹75 lakh or more, to reflect the current market reality.
Other demands from the sector include a reduction in goods and services tax (GST) rates on construction materials, a simplification of the process for obtaining construction permits, and a increase in the allocation of funds for affordable housing schemes.
The real estate sector is a significant contributor to India's economy, and its growth has a ripple effect on other sectors such as cement, steel, and labor. The sector's demands are not unreasonable, and the government would do well to consider them in the upcoming budget.
Information
The real estate sector has been facing a slowdown in recent years, due to a combination of factors such as high property prices, lack of affordable housing options, and a slow economy. The sector is a significant contributor to India's GDP, and its growth has a ripple effect on other sectors.
The National Real Estate Development Council (NAREDCO) is a leading industry body that represents the interests of the real estate sector. The council has been vocal about the sector's demands and has been engaging with the government to resolve the sector's issues.
Frequently Asked Questions
What is the current tax rebate limit on housing loan interest?
The current tax rebate limit on housing loan interest is ₹2 lakh.
What is the sector's demand for tax rebates on housing loan interest?
The sector is demanding that the government increase the tax rebate limit to ₹5 lakh or more.
Why is industry status important for the real estate sector?
Industry status is important for the real estate sector because it will enable it to access low-cost funds and reduce its dependence on private lenders.
What is the current limit for affordable housing?
The current limit for affordable housing is ₹45 lakh.
What is the sector's demand for affordable housing?
The sector is demanding that the government increase the limit for affordable housing to ₹75 lakh or more.
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