Revving Up the Indian Economy: Real Estate Sector's Expectations from Budget 2024
The Indian real estate sector is pinning its hopes on Budget 2024 to introduce reforms and policies that will stimulate growth and create a favorable environment for developers, investors, and homebuyers.
Budget 2024Real Estate SectorGst RationalizationInterest Subvention SchemeIndian EconomyReal EstateJul 15, 2024
Industry experts believe that the reintroduction of the interest subvention scheme, redefinition of affordable housing, and announcements on GST input credit could stimulate growth and foster a more resilient real estate environment. Additionally, the sector is seeking industry status, single-window clearance, and rationalization of GST on cement to reduce input costs.
Granting industry status to the real estate sector could enable easier access to low-cost financing, which would benefit consumers directly. Implementing single-window clearance would also facilitate timely project completion and cost efficiency. Furthermore, reintroducing GST input credits for residential real estate would stabilize costs, and increasing the home loan interest exemption to Rs 8 lakh annually would support first-time buyers.
The sector is also hopeful that the budget will introduce measures to reduce input costs for steel and fuel and rationalize the 28% GST on cement, which would benefit customers. According to NITI Aayog, the market size of the Indian real estate sector is expected to reach $1 trillion by 2030, contributing 13% to India's GDP by 2025.
With the upcoming budget, the industry players expect announcements that could unlock the sector's financial advantages and streamline project approvals. Besides, it will be crucial to introduce measures propelling market growth and benefitting developers, investors, and homebuyers, ultimately contributing to the overall development of the Indian economy.
Frequently Asked Questions
What is the expected market size of the Indian real estate sector by 2030?
$1 trillion
What is the current GST rate on cement?
28%
What is the sector's expectation from the budget in terms of affordable housing?
Redefinition of affordable housing and increase in the present limit from 90 sqmtr and Rs 45 lakhs
Why is granting industry status to the real estate sector important?
To enable easier access to low-cost financing, which benefits consumers directly
What is the sector's expectation from the budget in terms of home loan interest exemption?
Increase to Rs 8 lakh annually to support first-time buyers
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