Unlocking India's Real Estate Potential: Lessons from Dubai's Success
Dubai's real estate sector has achieved remarkable growth with $155 billion in sales, thanks to its favorable tax policies. Can India follow suit?
Real EstateDubaiIndiaTax PoliciesProperty MarketReal EstateJul 20, 2024
Contrast, India's top 10 developers collectively achieved sales of approximately INR 99,400 crores in 2023, while Emaar Properties, a leading developer in Dubai, recorded sales of INR 1,00,000 crores. This highlights the potential for growth in India's real estate sector if the right policies are put in place.
According to Samir Jasuja, a real estate expert, India needs radical reforms to achieve a $1 trillion real estate economy. He suggests several measures, including the removal of capital gains tax on real estate, making residential rent earned from property tax-free or adjustable against EMI, reducing GST rates for real estate, increasing the interest deduction limit, and implementing a single-window clearance system.
These measures could have a significant impact on India's real estate sector, boosting transactions, increasing liquidity, and reducing housing costs. By learning from Dubai's success, India can unlock its own real estate potential and achieve its ambitious growth targets.
Frequently Asked Questions
What is the size of Dubai?
Dubai covers an area of 35 km2, roughly half the size of South Mumbai.
What is the sales value of Emaar Properties in Dubai?
Emaar Properties recorded sales of $11 billion, equivalent to approximately INR 1,00,000 crores, in Dubai for 2023.
What is the impact of removing capital gains tax on real estate?
Removing capital gains tax on real estate would eliminate the tax paid on profits from selling property, boosting real estate transactions, increasing liquidity, and potentially lowering housing costs.
How can residential rental income be made tax-free or adjustable against EMI?
Allowing residential rental income to be directly offset against home loan EMIs would alleviate the double taxation burden on property owners, who currently pay taxes on both rental income and home loan interest.
What is the benefit of a single-window clearance system?
A single-window clearance system would consolidate all development authorities under one roof, ensuring timely approvals for real estate projects and reducing bureaucratic delays.
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