The real estate sector stands with its own set of expectations, hopeful for measures that could potentially boost its growth in the upcoming budget.
Key expectations from the real estate industry in interim budget 2024.
New Delhi,UPDATED: Jan 23, 2024 20:25 IST
The fiscal budget for the upcoming year 2024-25, is set for presentation in the backdrop of the general elections by Finance Minister Nirmala Sitharaman.
Traditionally, budget for election years tend to stay away from major policy announcements.
However, amid this backdrop, the real estate sector stands with its own set of expectations, hopeful for measures that could potentially boost its growth.
Despite the anticipated lack of major announcements, stakeholders in the real estate industry remain optimistic, seeking simple yet impactful changes to support and promote growth.
Real estate's outlook for Interim Budget 2024
Jetaish Gupta, Co-founder and Director of Adore Group, stresses the need for the government to focus on the affordable housing segment.
"The sector suffered a decline in sales during the pandemic. Currently, it comprises just 20 per cent of the total housing sales, a marked difference from pre-pandemic days, when it accounted for 40 per cent of sales," Gupta said.
He urged policy impetus, tax breaks, and fiscal support to revive this crucial segment, highlighting its role in reducing the widening housing gap.
Gurmit Singh Arora, National President of the Indian Plumbing Association, acknowledged the strong footing of the real estate sector in 2024.
Arora highlights the government's role in integrating affordability and long-term sustainability, suggesting lower lending rates, a revised affordability definition, and incentives for developers.
Arora also drew attention to the environmental impact.
"If we want to Decarbonize India and achieve Carbon Neutrality then we need to build buildings which are mandatory certified green," Arora urged the government to invest in green building practices to achieve carbon neutrality.
LC Mittal, Director of Motia Group, stressed the importance of real estate in the economy, contributing 8 per cent to the GDP and being a significant employment generator.
"The government should take proactive steps to boost the demand, rationalise the cost, and reduce the regulatory bottlenecks. In the coming budget, the governing agencies should look into giving real estate the industry status which is long due," Mittal said.
He further advocated for single-window clearance, tax breaks, and GST rationalisation to benefit not only the realty sector but also its supplementary industries.
Anurag Goel, Director of Goel Ganga Developments, suggested key initiatives for government support, including an increase in tax rebates on income tax to Rs 5 lakhs from 2 lakhs, reduction in repo rates, tax holidays for developers, and exploration of alternative project funding sources.
As the budget announcement approaches, the real estate sector looks forward to proactive steps from the government to ensure sustained growth and address the sector's unique challenges.
Published On:
Jan 23, 2024
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