Photo by Naomi Hébert on Unsplash
Buoyed by a remarkable year, the real estate sector in India is looking towards the 2024–2025 Interim Budget with much hope. The previous year witnessed an upsurge in both new launches and home sales, setting the stage for what many in the industry hope will be a transformative period of policy reform.
Highlighting the sector’s critical role in India’s overall economic framework, Kunal Rishi, COO of Paras Buildtech, emphasized the need for granting the real estate sector industry status. With its contribution of approximately 8% to the GDP and its role as a major employment generator, the health of the sector is crucial. The support of over 200 ancillary industries relies on the robustness of real estate. Therefore, granting it industry status would be a pivotal step, promoting an environment for sustained growth.
One of the key expectations from the real estate sector is the maintenance of single-window clearance for housing projects. This streamlined approach to project approvals would not only reduce bureaucratic hurdles but also ensure timely completion of projects. By eliminating unnecessary delays, developers can focus on meeting the growing housing demand and contribute to the overall economic growth.
In addition to industry status and single-window clearance, the real estate sector is also looking for tax breaks and GST rationalization. These measures are essential to stimulate growth in the sector and have a ripple effect across the economy. By reducing the tax burden on developers and homebuyers, the government can encourage investment in real estate and boost demand. This, in turn, will lead to job creation and economic prosperity.
Furthermore, the real estate sector expects the government to address the issue of liquidity in the market. Access to affordable financing options is crucial for developers to undertake new projects and complete existing ones. By ensuring adequate liquidity in the market, the government can support the growth of the real estate sector and enable it to fulfill its potential as a major contributor to the economy.
Another area of focus for the real estate sector is affordable housing. With the government’s vision of “Housing for All by 2022,” there is a need for continued support and incentives for affordable housing projects. By providing tax benefits and subsidies, the government can encourage developers to invest in this segment and make homeownership more accessible to the masses.
The real estate sector also hopes for increased infrastructure spending in the upcoming budget. Improved connectivity and better urban infrastructure not only enhance the livability of cities but also attract investments and drive economic growth. By allocating funds for infrastructure development, the government can create a conducive environment for real estate development and ensure sustainable urbanization.
Lastly, the real estate sector expects the government to address environmental sustainability in the budget. With the increasing focus on climate change and sustainable development, there is a need for policies that promote energy-efficient and eco-friendly practices in the real estate sector. By incentivizing green building initiatives and promoting renewable energy adoption, the government can contribute to a greener and more sustainable future.
In conclusion, the real estate sector in India has high expectations from the 2024–2025 Interim Budget. Granting industry status, maintaining single-window clearance, providing tax breaks and GST rationalization, addressing liquidity concerns, supporting affordable housing, increasing infrastructure spending, and promoting environmental sustainability are some of the key expectations from the sector. By addressing these expectations, the government can unleash the full potential of the real estate sector and contribute to India’s economic growth.
This post was published on January 25, 2024
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