The Indian real estate industry has seen significant growth recently, and with Budget 2024 approaching, there’s a wave of optimism for potential reforms. Favourable policies and effective resource allocation by the government could further boost the sector’s progress and stimulate economic growth.
Industry Expectations
The real estate sector has several key expectations from the upcoming budget, which, if met, could greatly influence its future trajectory. These include GST rate reductions, enhanced home loan interest rate deductions, streamlined single-window clearance systems, lower property prices, and promotion of off-center locations. A major demand is for the sector to be granted industry status, which would help attract higher investments and streamline regulatory processes.
GST Rate Reductions
One crucial expectation is the reduction of GST rates. Implementing regulations on GST input tax credit would effectively lower property prices and promote transparency. This would benefit homebuyers and drive economic growth. Additionally, initiatives to stabilise material costs could create a vibrant real estate landscape, fulfilling homebuyer ambitions and contributing to economic revival.
Home Loan Interest Rebate
Raising the home loan interest rebate under Section 24 from ₹ 2 lakh to ₹ 5 lakh could boost demand. Increased budget allocation for urban infrastructure, lowered stamp duty rates, and waivers for first-time homebuyers could also stimulate growth. Expanding affordable housing to include properties up to ₹ 75 lakhs with larger carpet areas and re-launching credit-linked subsidy schemes (CLSS) would add value for homebuyers.
Enhanced Tax Benefits on Home Loans
There is a growing demand to increase the principal repayment deduction under Section 80C from ₹ 1.5 lakh to ₹ 2.5 lakh. This would provide substantial relief to homebuyers, making home loans more affordable and stimulating investment in the real estate sector. Additionally, releasing certain land holdings at lower costs, especially for affordable housing projects, would reduce overall real estate prices and make housing more accessible.
Focus on Sustainability
The sector anticipates incentives for sustainable and environmentally friendly residential projects. Subsidies, tax benefits, and favourable loan terms for green construction methods could address environmental sustainability and provide affordable, energy-efficient housing options, leading to long-term savings and improved living standards.
Technological Advancements
There is also an expectation for increased spending on digital infrastructure. Enhancing internet connectivity and digital banking facilities in rural and semi-urban areas, along with ensuring fair practices among digital lenders, would foster trust and boost digital transactions.
Conclusion
If these policies are implemented, the real estate sector will be well-positioned for continuous growth, contributing to a stronger economy and improved living standards across the country.
