Budget 2024: What the Realty Sector Expects from the Government
The real estate industry is expecting a boost in the upcoming budget, with demands for increased funding for affordable housing schemes and tax incentives for homebuyers.
Real EstateBudget 2024Affordable HousingHome Loan Interest DeductionPradhan Mantri Awas YojanaReal EstateJul 22, 2024
The real estate industry is seeking a revival strategy for affordable housing, industry status, and additional tax incentives to boost demand. A grant of industry status could ease the availability of funds and increase participation from foreign investors, said CareEdge.
Nuvama expects more clarity and higher investments in housing for all initiatives, with some sops announced to boost affordable housing. The government may also consider revising the upper limit of affordable housing to match rising home prices.
Increasing the interest deduction limit on home loans could also drive sustainable growth in the real estate market. Currently, the maximum amount of interest that can be claimed as a deduction is Rs 2 lakh per annum for a self-occupied property.
Realty stocks have had a strong run on the exchanges over the last one year, with returns by the 10-stock Nifty Realty index being 103%, significantly outperforming the broader Nifty50.
Companies like Sobha, Prestige Estates, Brigade Enterprises, and The Phoenix Mills have given multibagger returns, while others like Oberoi Realty, DLF, Sunteck Realty, Godrej Properties, and Macrotech Developers have given between 63% and 97% returns.
Aavas Financiers, LIC Housing Finance, Home First Finance, Repco Home Finance, GIC Housing Finance, Can Fin Homes, and HUDCO are also expected to remain in focus.
CareEdge is a credit ratings agency that provides research and analysis on the Indian economy and financial markets.
Nuvama is a research firm that provides insights and recommendations on the Indian stock market.
Dhruva Advisors is a consulting firm that provides expertise on taxation and regulatory matters.
The Economic Times is a leading Indian business newspaper that provides news, analysis, and insights on the Indian economy and financial markets.
Frequently Asked Questions
What is the current interest deduction limit on home loans?
The current interest deduction limit on home loans is Rs 2 lakh per annum for a self-occupied property.
What is the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) is a government scheme aimed at providing affordable housing to all.
What is the SWAMIH scheme?
The SWAMIH scheme is a government initiative to provide priority debt financing for the completion of stalled housing projects.
What is the expected impact of the budget on the real estate sector?
The budget is expected to boost the real estate sector by increasing funding for affordable housing schemes and providing tax incentives for homebuyers.
Which companies are expected to benefit from the budget announcements?
Companies like Sobha, Prestige Estates, Brigade Enterprises, and The Phoenix Mills are expected to benefit from the budget announcements.
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