Real Estate Industry Calls for Budget 2025 Reforms to Drive Growth
In a recent discussion with CNBC-TV18, Niranjan Hiranandani, Chairman of NAREDCO, the national body representing the Indian real estate sector, emphasized the need for significant reforms in the upcoming Budget 2025 to boost the industry's growth amid cur
Real EstateBudget 2025NaredcoReformsEconomic GrowthReal EstateJan 15, 2025
In a candid conversation with CNBC-TV18, Niranjan Hiranandani, the Chairman of the National Real Estate Development Council (NAREDCO), highlighted the pressing need for reforms in the upcoming Budget 2025.
NAREDCO, the national body representing the real estate industry, has been advocating for policy changes to rejuvenate the sector and boost its contribution to the economy.
Niranjan Hiranandani expressed his concerns about the current state of the real estate market, which is grappling with issues such as liquidity constraints, regulatory hurdles, and a slowdown in demand.
He emphasized that without substantial reforms, the sector may struggle to achieve its full potential and support the broader economic recovery.
Key Reforms Suggested by NAREDCO
1.
Tax Incentives for Homebuyers Hiranandani suggested introducing tax incentives for first-time homebuyers to stimulate demand in the housing market.
This could include tax breaks on home loans and exemptions on stamp duty and registration fees.
Such measures would make homeownership more affordable and accessible, particularly for the middle class.
2.
Ease of Doing Business The real estate sector is heavily regulated, which often leads to delays and increased costs.
Hiranandani called for streamlining the regulatory framework to make it easier for developers to obtain approvals and complete projects.
This could involve reducing the number of clearances required and establishing a single-window clearance system.
3.
Infrastructure Development Hiranandani emphasized the importance of investing in infrastructure to support the growth of the real estate sector.
This includes developing better road networks, public transportation systems, and utilities.
Improved infrastructure can enhance the attractiveness of real estate projects and boost property values.
4.
Affordable Housing The demand for affordable housing remains high, especially in urban areas.
Hiranandani proposed increasing the allocation of funds for affordable housing schemes and incentivizing developers to build more units in this segment.
This would help address the housing shortage and provide affordable options for low-income households.
5.
Revitalizing the Rental Market Hiranandani pointed out that the rental market is underdeveloped in India compared to other countries.
He suggested introducing policies to promote the rental market, such as tax benefits for landlords and security measures for tenants.
This could provide a viable alternative to home ownership for those who prefer or need to rent.
of NAREDCO
The National Real Estate Development Council (NAREDCO) is the apex body representing the real estate and infrastructure industry in India.
Founded in 1994, NAREDCO aims to promote the growth and development of the sector through advocacy, dialogue, and collaboration with the government and other stakeholders.
The organization represents over 1,500 members, including developers, builders, and real estate service providers, and works towards creating a favorable regulatory environment for the industry.
Booming Potential of the Real Estate Sector
Despite the current challenges, the real estate sector in India holds immense potential.
With a growing population, urbanization, and increasing disposable incomes, there is a strong demand for housing and commercial spaces.
The sector also plays a crucial role in job creation and contributes significantly to the GDP.
By implementing the suggested reforms, the government can unlock this potential and position the real estate sector as a key driver of economic growth.
Conclusion
The real estate sector's call for reforms in the upcoming Budget 2025 highlights the industry's proactive approach to overcoming current challenges and driving sustainable growth.
NAREDCO's proposals, if implemented, could create a more supportive environment for developers and homebuyers, ultimately leading to a more vibrant and resilient real estate market in India.
Frequently Asked Questions
What is NAREDCO?
NAREDCO, the National Real Estate Development Council, is the apex body representing the real estate and infrastructure industry in India. It aims to promote the growth and development of the sector through advocacy, dialogue, and collaboration with the government and other stakeholders.
What are the main challenges facing the Indian real estate sector?
The main challenges include liquidity constraints, regulatory hurdles, a slowdown in demand, and the need for better infrastructure and affordable housing options.
What reforms does NAREDCO suggest for the real estate sector?
NAREDCO suggests tax incentives for homebuyers, easing the regulatory framework, investing in infrastructure, increasing funds for affordable housing, and revitalizing the rental market.
Why is tax relief for first-time homebuyers important?
Tax relief for first-time homebuyers can make homeownership more affordable and accessible, particularly for the middle class, thereby stimulating demand in the housing market.
How can infrastructure development support the real estate sector?
Improved infrastructure, including better road networks, public transportation systems, and utilities, can enhance the attractiveness of real estate projects and boost property values.
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