Photo by Naomi Hébert on Unsplash
The real estate sector in India plays a crucial role in the country’s economy, contributing significantly to GDP growth and generating employment opportunities. As the Finance Minister, Nirmala Sitharaman, prepares to present the budget for the year 2024, the real estate industry eagerly awaits measures and policies that can boost its growth and address the challenges it faces. Here are the 10 key expectations from the real estate sector for Budget 2024:
The real estate industry expects the government to grant it infrastructure status, which would provide access to various benefits and incentives. This recognition would enable developers to access long-term financing at lower interest rates, leading to increased investment and development activities.
The real estate sector hopes for a rationalization of Goods and Services Tax (GST) rates. Currently, the sector faces multiple GST rates, including 5%, 12%, and 18%, depending on the type of property. Streamlining these rates would simplify compliance and reduce the overall tax burden on homebuyers.
The real estate industry expects the government to establish a single window clearance system for obtaining approvals and permits. This would eliminate bureaucratic delays, reduce project costs, and accelerate the pace of construction, benefiting both developers and homebuyers.
Given the government’s focus on affordable housing, the real estate sector anticipates additional incentives and tax benefits for developers and homebuyers in this segment. Measures such as increased deduction limits on home loan interest and tax breaks for developers could stimulate the supply of affordable housing.
The real estate industry expects the government to introduce measures to promote rental housing. Encouraging institutional investors to participate in the rental market through tax incentives and regulatory reforms would increase the availability of quality rental housing options for individuals and families.
The real estate sector seeks clarity on the availability of Input Tax Credit (ITC) under the GST regime. Clear guidelines and provisions regarding ITC would help developers manage their costs effectively and prevent any ambiguity in claiming tax credits.
The real estate sector expects the government to introduce measures to revive stalled projects. Providing financial support, facilitating project completion, and resolving disputes would not only benefit homebuyers but also boost investor confidence in the sector.
The real estate industry hopes for further relaxation in FDI norms to attract more foreign investments. Simplifying the approval process and allowing 100% FDI in completed projects would infuse much-needed capital into the sector and promote international collaboration.
The real estate sector expects the government to provide incentives for the development of green buildings. Encouraging sustainable construction practices through tax benefits and expedited approvals would contribute to environmental conservation and energy efficiency.
The real estate industry anticipates reforms in the Real Estate Regulatory Authority (RERA) to make it more efficient and effective. Strengthening RERA’s enforcement mechanisms, ensuring timely dispute resolution, and addressing the concerns of developers and homebuyers would enhance transparency and trust in the sector.
In conclusion, the real estate sector has high expectations from Budget 2024. The industry looks forward to measures that can provide a much-needed impetus to its growth, address key challenges, and create a conducive environment for developers and homebuyers alike. By addressing these expectations, the government can play a crucial role in revitalizing the real estate sector and driving economic growth.
This post was published on January 26, 2024
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