Unlocking India's Housing Potential: What to Expect from Budget 2024-25
With the upcoming budget, the real estate sector is eagerly awaiting reforms to boost affordable housing, stimulate economic growth, and create jobs.
Real EstateBudget 2024 25Housing SectorIndiaEconomic GrowthReal EstateJul 08, 2024
The real estate sector is a significant contributor to India's GDP, generating numerous jobs and driving economic growth. Despite the challenges posed by the Covid-19 pandemic, the sector has continued to grow, driven by positive market sentiments, urbanization, and supportive government policies.
The budget is expected to introduce initiatives aimed at fortifying the sector, including potential increases in rebates on home loan interest rates, reductions in GST rates, and the establishment of single-window clearance systems. The sector is also advocating for impactful measures such as special schemes and tax incentives for developers to revitalize the affordable housing segment.
Industry stakeholders have been consulted ahead of the budget, and experts believe that the allocation of resources, tax reforms, and policy implications will have a significant impact on developers, investors, and homebuyers alike. The budget is also expected to focus on slum redevelopment in major cities, reduce regulatory costs, and enable automatic approvals.
According to Goldman Sachs, India's infrastructure upgrades have created long-term positive growth spillovers, and the budget is likely to make an overarching statement about the government's long-term economic policy towards 2047. The investment bank has noted that 26 million houses have been built under the rural housing scheme since 2016 and expects the budget to focus on clean drinking water for households in rural and urban areas.
In this context, industry leaders such as Dr. Niranjan Hiranandani, Founder & Chairman, Hiranandani Group; Gulam Zia, Senior ED, Knight Frank India; and Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com, share their forecasts and strategic perspectives on the future of the realty sector amidst Budget 2024-25.
Information
Hiranandani Group is a leading real estate developer with a legacy of over four decades. Founded by Dr. Niranjan Hiranandani, the group has developed several iconic projects across Mumbai and other cities in India.
Knight Frank India is a leading international property consultancy with a presence in over 60 countries. The firm provides a range of services including valuation, research, and transaction advisory.
Housing.com & PropTiger.com are leading online real estate platforms that provide a range of services including property listings, research, and transaction advisory.
Goldman Sachs is a leading investment bank that provides a range of services including investment banking, asset management, and securities. The firm has a presence in over 30 countries and is widely recognized for its expertise in the financial services sector.
Frequently Asked Questions
What is the real estate sector expecting from Budget 2024-25?
The sector is expecting reforms aimed at benefiting taxpayers, homebuyers, and the economy as a whole, including potential increases in rebates on home loan interest rates, reductions in GST rates, and the establishment of single-window clearance systems.
What is the current state of the real estate sector in India?
The sector has continued to grow despite the challenges posed by the Covid-19 pandemic, driven by positive market sentiments, urbanization, and supportive government policies.
What is the significance of the real estate sector in India's economy?
The sector is a significant contributor to India's GDP, generating numerous jobs and driving economic growth.
What are the challenges faced by the affordable housing segment?
The segment has faced challenges since the onset of the Covid-19 pandemic, and industry stakeholders are advocating for impactful measures such as special schemes and tax incentives for developers to revitalize the segment.
What is Goldman Sachs' outlook on India's infrastructure upgrades?
According to Goldman Sachs, India's infrastructure upgrades have created long-term positive growth spillovers, and the budget is likely to make an overarching statement about the government's long-term economic policy towards 2047.
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