Photo by Naomi Hébert on Unsplash
The real estate sector plays a crucial role in the economic growth of any country. It not only provides shelter to people but also contributes significantly to employment generation and infrastructure development. As we approach Budget 2024, the real estate sector has presented its wishlist to the government, highlighting the key demands that can help boost the industry and drive economic recovery.
One of the top demands from the real estate sector is the provision of tax sops for homebuyers. The high cost of homes and the burden of various taxes make it difficult for many individuals and families to afford their dream homes. By providing tax incentives such as an increase in the deduction limit for home loan interest or a reduction in the GST rate on under-construction properties, the government can make homeownership more accessible and affordable.
Stamp duty is a significant expense for homebuyers, often ranging from 5% to 7% of the property value. The real estate sector is urging the government to consider reducing stamp duty charges to encourage more people to invest in real estate. A reduction in stamp duty rates can not only stimulate demand but also provide a much-needed boost to the sector, leading to increased economic activity and job creation.
The real estate sector is closely linked to infrastructure development. Improved connectivity, better roads, and the availability of basic amenities are crucial for the growth of the sector. The government should allocate a significant portion of the budget for infrastructure development, especially in Tier 2 and Tier 3 cities, to attract investments and promote balanced regional growth.
The real estate sector has long been grappling with issues related to regulatory approvals and bureaucratic red tape. The time-consuming and cumbersome process of obtaining multiple clearances hampers the timely completion of projects and increases costs. The industry is requesting the government to establish a single window clearance mechanism, which will streamline the approval process and expedite project completion.
Rental housing is an essential component of the real estate sector, catering to a significant portion of the population. However, the lack of a comprehensive rental policy and the absence of rental housing incentives discourage individuals from investing in rental properties. The government should introduce policy reforms to promote rental housing, such as tax benefits for landlords and the establishment of a rental housing regulatory authority to address disputes and ensure fair practices.
Foreign Direct Investment (FDI) plays a crucial role in the growth of the real estate sector. The government should consider relaxing FDI norms and providing more incentives to attract overseas investors. This will not only infuse much-needed capital into the sector but also bring in international expertise and technology, leading to improved quality and efficiency in real estate projects.
Affordable housing is a pressing need in a country like ours, where a significant portion of the population struggles to find decent and affordable housing options. The government should continue its focus on affordable housing schemes and provide additional incentives to developers to promote the construction of affordable homes. This will not only address the housing needs of the economically weaker sections but also create employment opportunities and boost the overall economy.
In conclusion, the real estate sector has presented its wishlist to the government, emphasizing the need for tax sops, stamp duty reduction, infrastructure development, policy reforms, and a focus on affordable housing. By addressing these demands in Budget 2024, the government can provide a much-needed impetus to the real estate sector, stimulate economic growth, and pave the way for a brighter future.
This post was published on January 31, 2024
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