Indian Real Estate Sector: What to Expect from Budget 2024-25
As India's real estate market continues to grow, the industry is eagerly anticipating reforms that can benefit not only the sector but also taxpayers and those seeking affordable housing.
Real EstateHousing SectorBudget 2024 25IndiaInfrastructure DevelopmentReal Estate NewsJul 08, 2024
The sector is advocating for impactful measures such as special schemes and tax incentives for developers to revitalize the affordable housing segment, which has faced challenges since the onset of the Covid-19 pandemic. This is in contrast to the robust demand witnessed for larger and more expensive homes. The government's consultation with industry stakeholders ahead of presenting the General Budget in Parliament next month is a positive step towards addressing the sector's concerns.
Goldman Sachs, the investment bank, believes that India's infrastructure upgrades have created long-term positive growth spillovers, which policymakers may not be willing to give up. The bank expects the Budget to go beyond just fiscal numbers and make an overarching statement about the government's long-term economic policy towards 2047. In the housing sector, Goldman Sachs notes that 26 million houses have been built under the rural housing scheme since 2016 and expects the Budget to focus on slum redevelopment in major cities, reduce regulatory costs, and enable automatic approvals.
In an exclusive panel discussion, industry stalwarts, including Dr. Niranjan Hiranandani, Founder & Chairman, Hiranandani Group; Gulam Zia, Senior ED, Knight Frank India; and Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com, shared their insights on the future of the realty sector amidst Budget 2024-25. They highlighted the need for policy reforms, tax incentives, and infrastructure development to support the sector's growth.
The sector's growth is crucial for the country's economic development, and the Budget 2024-25 provides an opportunity for the government to introduce reforms that can benefit the sector and the economy as a whole. With the right policies and incentives, the Indian real estate sector can continue to grow and contribute significantly to the country's GDP.
Information
Hiranandani Group is a leading real estate developer with a presence in India and overseas. Knight Frank India is a leading international property consultancy firm. Housing.com & PropTiger.com are leading online real estate platforms.
Goldman Sachs is a leading investment bank and financial services company. It provides a range of financial services, including investment banking, asset management, and securities.
Frequently Asked Questions
What is the significance of the real estate sector in India?
The real estate sector is a major contributor to India's GDP and generates numerous jobs, making it a crucial sector for the country's economic development.
What are the expectations from Budget 2024-25 for the real estate sector?
The sector expects reforms such as increases in rebates on home loan interest rates, reductions in GST rates, establishment of single-window clearance systems, and promotion of development in peripheral areas.
What are the challenges faced by the affordable housing segment in India?
The affordable housing segment has faced challenges since the onset of the Covid-19 pandemic, including slow demand and lack of incentives for developers.
What is the government's initiative towards infrastructure development in India?
The government has initiated several infrastructure development projects, including slum redevelopment in major cities, reduction of regulatory costs, and enabling automatic approvals.
What is the role of policy reforms in supporting the growth of the real estate sector in India?
Policy reforms, including tax incentives and infrastructure development, are crucial for supporting the growth of the real estate sector in India and addressing the sector's concerns.
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