Union Budget 2024: Real Estate Sector Pins Hopes On Key Expectations
The real estate sector in India, a cornerstone of economic growth, is eagerly awaiting the Union Budget 2024. Industry leaders and stakeholders have articulated their expectations, expressing optimism that the budget will introduce transformative measures to propel growth and address challenges in the sector.
Thoughtful Consideration In Reintroducing Tax Breaks
Manan P Shah, Managing Director of MICL Group emphasises the need for thoughtful consideration in reintroducing tax breaks for affordable housing and enhancing tax rebates under Section 24. He advocates for a streamlined single-window clearance process and a strategic reduction in stamp duty. Additionally, he underscores the importance of implementing input tax credit under GST for industry sustainability and competitiveness.
Chintan Sheth, Chairman & Managing Director of Sheth Realty pins expectations on the extension of the Credit Linked Subsidy Scheme (CLSS) to democratise access to affordable housing. Sheth also calls for policies addressing high-interest rates to strike a balance between affordability and business growth. An augmented rebate on home loan interest under Section 24 is sought to stimulate the housing market.
Transformative Budget With Tax Relief
Bhavesh Shah, Joint Managing Director of Today Global Developers anticipates a transformative budget with tax reliefs on homes, an elevated tax deduction limit for home loans, and an extension of visionary schemes like GST reduction on under-construction properties. Mr. Bhavesh Shah emphasises strategic adjustments in raw material pricing, infrastructure status, and increased budgetary allocation for overall growth.
Chirag Mehta, Founder, Arbour Investments outlines a comprehensive list of expectations, including increased deduction limits on home loan interest, revision of Section 80C limits, subsidies for first-time home buyers, GST reduction on construction materials, incentives for affordable housing, enhanced credit availability, stamp duty concessions, rental housing schemes, LTCG tax relief, infrastructure development in emerging areas, and support for Real Estate Investment Trusts (REITs). The focus is on making home ownership more affordable and stimulating the real estate sector.
Policies Favouring Home Buyers
Amrita Gupta, Director of Manglam Group emphasises gender-sensitive and sustainable policies in alignment with the September 2023 Delhi Declaration under the G20 India presidency. She anticipates a substantial increase in gender budgeting and a focus on building a long-term plan for a sustainable future.
Aditya Khushwaha, CEO & Director Axis Ecorp acknowledges the impressive growth in India's housing market in 2023 despite challenges. He expects the 2024 Budget to favour homebuyers, supporting ongoing sector growth. Key measures include maximum deductions for home loans, a stable interest rate environment, and continued focus on affordable housing.
Affordable Housing To Be The Key
Pratiks Potnis, Co-founder and CEO TRIOS expresses excitement and hope for the real estate sector in the upcoming budget. Priorities include support for affordable housing, industry status for streamlined processes, and input tax credits for high-end commercial properties. The aim is to boost demand in tier-II and tier-III cities for sustainable growth.
Aakash Patel, Director Atul Projects India highlights the significant growth in the Indian real estate landscape in 2023 and anticipates sustained positive momentum. The expectations revolve around critical measures like tax breaks for affordable housing, attracting foreign investments, and incentivising NRIs through easier tax compliance and reduced withholding tax rates.
Role of Input Tax Credit
Mohit Malhotra, Founder & CEO NeoLiv focuses on the pivotal role of input tax credit under GST for development companies. Additionally, Mohit Malhotra looks forward to the creation of new pockets of development with higher budgetary allocations for infrastructure, especially for mid-range housing projects.
SK Sayal, MD & CEO Bharti Real Estate acknowledges India's encouraging growth trajectory and anticipates initiatives in the 2024 budget aimed at bolstering the country's optimistic outlook. Infrastructure remains a top priority, and Bharti Real Estate commits to supporting the government's goals with well-timed commercial real estate investments.
As stakeholders eagerly await the budget announcement, the collective expectations outlined by industry leaders paint a comprehensive picture of the transformative measures needed for the real estate sector. The government's response to these expectations will play a crucial role in shaping the trajectory of the industry, influencing economic growth, job creation, and housing accessibility in the country. The anticipation is high, and the sector remains optimistic about the potential positive impact of the Union Budget 2024 on India's real estate landscape.
As a major driver of the Indian economy, the real estate sector is at a critical juncture. The forthcoming budget is expected to introduce measures that not only attract foreign investments but also contribute significantly to job creation, solidifying the sector's role in India's economic expansion.
