Union Budget 2024-25: Real Estate's Wish List for a Revival
The real estate sector pins hope on the Modi government for tax reliefs and sentiment boosters in the upcoming Union Budget 2024-25.
Real EstateUnion Budget 2024 25Affordable HousingModi GovernmentAnarock GroupReal EstateJun 20, 2024
The Indian housing sector has shown promise in 2024, with housing sales and new launches reaching new peaks in the top 7 cities. However, the growth trajectory is skewed towards mid-range and premium housing, leaving the affordable housing segment lagging behind. According to ANAROCK Research, the sales share of affordable housing reduced significantly after COVID-19, from over 26% in 2022 and over 38% in 2019 to approximately 20% in Q1 2024.
To address this, the government needs to take 'real' measures to revive the affordable housing segment. This can be achieved by reintroducing the credit-linked subsidy scheme under PMAY, which expired in 2022, to incentivize first-time buyers of affordable homes across cities. Additionally, the government can re-introduce the '100% Tax Holiday' benefit for affordable housing developers to boost supply and incentivize developers to build more affordable housing.
The definition of affordable housing criteria also needs to be tweaked to widen additional deductions benefits to more buyers. The current definition of affordable housing is based on property size, price, and buyers' income, but the pricing of homes within the affordable housing budget needs to be revised, taking into consideration city-specific market dynamics.
ANAROCK Group's Chairman, Anuj Puri, emphasized that the momentum in the housing sector must continue, and the government needs to take concrete steps to support and improve urban living standards, as well as develop and promote newer areas.
ANAROCK Group is a leading real estate consultancy firm that provides research-based insights and advisory services to stakeholders in the industry.
Frequently Asked Questions
What is the current state of the affordable housing segment in India?
The affordable housing segment has been on a decline since the pandemic, with its sales share reducing significantly from over 26% in 2022 and over 38% in 2019 to approximately 20% in Q1 2024.
What measures can the government take to revive the affordable housing segment?
The government can reintroduce the credit-linked subsidy scheme under PMAY, re-introduce the '100% Tax Holiday' benefit for affordable housing developers, and tweak the definition of affordable housing criteria to widen additional deductions benefits to more buyers.
What is the significance of the Union Budget 2024-25 for the real estate sector?
The Union Budget 2024-25 is crucial for the real estate sector, as it is expected to bring tax reliefs and sentiment boosters that can help revive the industry, particularly the affordable housing segment.
What is the current growth trajectory of the housing sector in India?
The housing sector in India has shown promise in 2024, with housing sales and new launches reaching new peaks in the top 7 cities, but the growth trajectory is skewed towards mid-range and premium housing, leaving the affordable housing segment lagging behind.
What is the role of ANAROCK Group in the real estate sector?
ANAROCK Group is a leading real estate consultancy firm that provides research-based insights and advisory services to stakeholders in the industry.
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