Revamping India's Real Estate Sector: Budget 2024 Expectations
Real estate developers are pinning their hopes on the Union Budget 2024 to bring about significant transformation and radical changes to the sector.
Real EstateUnion Budget 2024Industry StatusCapital Gains TaxGst RatesReal Estate NewsJul 20, 2024
Samir Jasuja, founder and CEO of PropEquity, emphasized the need for reforms, citing Dubai's success in the real estate sector. Dubai's real estate laws, such as no capital gains tax, no tax on property rental income, and no tax on property purchases, have induced significant growth in the sector. Jasuja suggested that removing capital gains tax on real estate would boost transactions, increase liquidity, and potentially lower housing costs.
Additionally, Jasuja proposed that allowing rental income to be directly offset against home loan EMIs would alleviate the double taxation burden on property owners, stimulating real estate transactions. Reducing GST rates could also decrease overall housing costs.
Mohit Malhotra, founder and CEO of NeoLiv, highlighted the importance of rationalizing GST and providing developers access to input tax credit, which would be a strategic measure to boost sectoral growth for homebuyers and drive economic recovery.
The sector's long-standing demand for single window clearance and industry status is also expected to be addressed in the budget. Vivek Singhal, CEO of Smartworld Developers, believes that industry status and single-window clearance for housing projects would provide the much-needed transparency and speed up project execution cycles.
Angad Bedi, MD, BCD Group, emphasized the need for strengthening regulations in the sector, including RERA, single window clearances, and swifter resolution of stuck projects. He also highlighted the importance of greater public and private investments in infrastructure, attracting higher foreign direct investment, and promoting emerging sectors of real estate.
Vijay Harsh Jha, founder and CEO, VS Realtors (I) Pvt Ltd, proposed that the government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which would add momentum to housing demand.
Overall, the real estate sector is hoping for significant reforms in the Union Budget 2024 to stimulate growth and achieve its ambitious targets.
Frequently Asked Questions
What is the real estate sector's expectation from the Union Budget 2024?
The real estate sector is expecting significant reforms, including industry status, removal of capital gains tax, and rationalization of GST rates, to stimulate growth and achieve its ambitious targets.
How can removing capital gains tax on real estate benefit the sector?
Removing capital gains tax on real estate would boost transactions, increase liquidity, and potentially lower housing costs.
What is the importance of single window clearance in the real estate sector?
Single window clearance would provide the much-needed transparency and speed up project execution cycles in the real estate sector.
How can the government strengthen regulations in the real estate sector?
The government can strengthen regulations in the sector by implementing RERA, single window clearances, and swifter resolution of stuck projects.
What is the impact of GST rates on the real estate sector?
Reducing GST rates could decrease overall housing costs and boost sectoral growth for homebuyers.
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