Union Budget 2024: Will Real Estate Industry Get the Desired Boost?
With the Union Budget 2024 around the corner, India's real estate sector is eagerly waiting for favourable policies and reforms. Will the government finally grant industry status to the sector?
Real EstateUnion Budget 2024Home BuyersDevelopersGst RatesReal Estate MumbaiJul 18, 2024
One of the long-standing demands of the real estate industry is to grant it industry status. This would provide developers with easier access to credit, reducing their borrowing costs and enabling them to focus on project completion. Additionally, it would also help in improving the overallEase of Doing Business (EODB) in the sector.
Another crucial aspect that the real estate sector is looking forward to is a reduction in the Goods and Services Tax (GST) rates on construction materials. A lower GST rate would help in reducing the cost of construction, making housing units more affordable for homebuyers.
Homebuyers, on the other hand, are hoping for an increase in the deduction limit for home loan interest rates. Currently, homebuyers can claim a deduction of up to Rs 2 lakh on home loan interest rates under Section 24 of the Income-tax Act. An increase in this limit would provide relief to homebuyers, especially in metropolitan cities like Mumbai, where property prices are high.
Furthermore, the real estate sector is also expecting the government to incentivize new homebuyers through reduced stamp duty. Stamp duty is a significant cost component for homebuyers, and a reduction in it would make housing more affordable.
In a conversation with Mid-day's Katyayani Kapoor, Punit Agarwal, Co-Founder and CEO of Nirvana Realty, shared his expectations from the upcoming Budget. He highlighted the need for the government to focus on policy reforms that would stimulate growth in the real estate sector.
The real estate sector is a significant contributor to India's GDP, and the government's policies and reforms will have a direct impact on the sector's growth. As the Budget presentation approaches, the industry is keeping its fingers crossed, hoping for a benign and growth-oriented budget.
Information
Nirvana Realty is a Mumbai-based real estate company that has been at the forefront of providing affordable housing solutions to homebuyers.
Nirvana Realty is a leading real estate company in Mumbai, committed to providing innovative and affordable housing solutions to its customers. With a focus on quality and customer satisfaction, Nirvana Realty has established itself as a trusted name in the Indian real estate industry.
Frequently Asked Questions
What is the real estate sector expecting from the Union Budget 2024?
The real estate sector is expecting favourable policies and reforms, including industry status, GST rate cut on construction materials, and relief for homebuyers through increased deduction limit for home loan interest rates.
Why is industry status important for the real estate sector?
Industry status would provide developers with easier access to credit, reducing their borrowing costs and enabling them to focus on project completion.
What is the current deduction limit for home loan interest rates under Section 24 of the Income-tax Act?
The current deduction limit for home loan interest rates under Section 24 of the Income-tax Act is Rs 2 lakh.
How would a reduction in stamp duty benefit homebuyers?
A reduction in stamp duty would make housing more affordable for homebuyers, as it is a significant cost component.
What is the significance of the real estate sector in India's economy?
The real estate sector is a significant contributor to India's GDP, and the government's policies and reforms will have a direct impact on the sector's growth.
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