Budget 2024 Expectations: With Budget 2024 coming up soon, the Indian real estate sector is buzzing with expectations. It’s important to note that February’s budget will likely be an interim budget due to upcoming elections. While major policy changes might be limited, they can still set the tone for the full budget presented by the next government.
Also Read: Budget 2024 Expectations: ‘Affordability’ Top Priority For Real Estate, Know Key Demands
Remember, these are just some of the expectations. The actual measures announced in the budget could be different. Regardless, the real estate sector remains hopeful for favourable policies that stimulate growth and benefit both developers and homebuyers.
Here’s a breakdown of some key expectations:
Home Loan Cap From Rs 2 lakhs To Rs 5 lakhs
Venkatesh Gopalakrishnan, director group promoter’s office, MD & CEO, Shapoorji Pallonji Real Estate (SPRE) said as we approach 2024, the real estate sector is at a crucial point, anticipating opportunities beyond conventional boundaries. With signs of pre-pandemic stability, the industry is poised for sustained growth.
“While acknowledging the government’s efforts, we propose targeted measures in the upcoming Union Budget to unlock the sector’s full potential. We urge the government to consider our primary request, which is a significant increase in the home loan cap from Rs 2 lakhs to Rs 5 lakhs annually. This would not only incentivise homebuyers but also boost industry revenue,” Gopalakrishnan added.
Capital Gains Tax
Gopalakrishnan also advocated for a reduction in long-term capital gains tax, waiving notional rent on second properties, and aligning the income tax rate with corporate rates at around 25 per cent.
“To revive the sector, the government should focus on affordable housing. We propose to reduce GST rates and interest subventions for affordable housing. Single window clearance for the sector has been pending for a long time. We hope to see it granted in this year’s budget,” Gopalakrishnan urged.
Industry Status
Gopalakrishnan also demanded the industry-wide call for granting “industry status” to the residential sector, aligning with the government’s vision of “housing for all.”
Section 80C Limit
Gopalakrishnan also highlighted supportive measures, including NAREDCO’s appeal for a Rs 50,000 crore fund, which will also align with the government’s vision of “housing for all” and could significantly fortify the sector’s trajectory.
“The budget is a chance to redefine affordability as the diverse locations demand different price caps instead of uniformity. Recognising changing investment dynamics, we suggest expanding Section 80C limits for millennials and Gen-Z homebuyers,” Gopalakrishnan said.
GST, ITC & CLSS Scheme
Pradeep Aggarwal, founder and chairman, Signature Global (India), also emphasised the long-overdue grant of industry status to the real estate sector.
“Urging the extension of Infrastructure status to affordable housing, we advocate for a solution where the sector receives input tax credit benefits and reduced GST rates on construction materials reduced to single digits,” Aggarwal urged.
Aggarwal also underlined the need for the government to institute a Single Window Clearance system for expeditious project execution. Furthermore,he added that the government should relaunch the CLSS scheme, expanding affordable housing criteria to Rs 75 lakhs and increasing the carpet area to 90 square metres.
“These strategic measures are envisioned to fortify the real estate sector and contribute significantly to the nation’s economic resurgence.”
Artificial Intelligence Adoption
Sanjeev Bhandari, founder & CEO, AirBrick Infra, said, “We look forward to policies that propel digital transformation and artificial intelligence adoption. Anticipating increased budgetary allocations for skilling programs, the industry expects a focus on developing a robust talent pool. Additionally, incentives for businesses investing in AI research and development, coupled with measures to ensure ethical AI practices, are eagerly awaited. A balanced approach to regulation, fostering innovation while addressing potential risks, is paramount.”
“The industry hopes the budget will reflect a commitment to positioning the nation as a global leader in the responsible and beneficial application of transformative technologies.”
Energy Efficient Sector
Sourabh Bansal, co-founder & MD, Magicrete, said, “Our expectations align with the urgent need for sustainability and energy efficiency. The construction sector’s impact on global carbon emissions underscores the necessity for transformative measures. We advocate for the introduction of financial incentives and subsidies, such as reduced GST rates, tax credits, or grants, to encourage the production and utilisation of green building materials. The government’s commitment to reducing emissions intensity aligns with our plea for substantial investments in research and development for sustainable technologies in construction.”
Budget 2024 Date: The Union Budget 2024, which will be an interim budget, is set to be presented on Thursday, February 1, 2024.
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