Union Budget 2022: Realty sector urges govt to increase standard deduction on home loans to Rs 5 lakh

The real estate sector, like others businesses, is looking forward to many positive, innovative and path-breaking announcements in the budget this year.

New Delhi: The Realty sector is pinning a lot of hopes that the upcoming budget shall offer the much-needed push to the infrastructural development of the country. 

Amit Jain, Chairman and Managing Director, ARKADE Group said, "For encouraging salaried employees to invest in residential homes, the finance minister should consider increasing the standard deduction on home loans to Rs 5 lakhs, and should also increase standard deduction from 30% to 50%. For affordable housing, there has been a demand to increase the limit on value of the house to be raised to Rs 75 lakhs in non-metro cities and Rs 1.50 crore in metro cities from the current ceiling of Rs 45 lakh."

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory said, "Deviation of 20% from circle rates should be extended across the sector and not limited to homes costing upto Rs.2 crores. The same will allow developers to offload the massive build-up of unsold inventory costing more than Rs.2 crores. Currently the major part of the unsold inventory is ready-to-move-in and falls in the luxury category."

Sandeep Runwal - President, NAREDCO Maharashtra and Managing Director, Runwal Group said Real estate being the second-highest employment generator and contributing more than 8 percent to the economy, the expectations from the 2022-23 budget are high and the industry is awaiting big announcements that will alter the future of the real estate sector.

"We also expect the government to continue promoting the affordable rental housing schemes by announcing tax reliefs for rental housing projects, which will fast track the pace of investments in these schemes," he added.

Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI MCHI said, "We have written to the government to urge for a reduction in tax for investments on Real Estate Investment Trusts (REITs) and, also demanded tax-neutral consolidation of businesses through the mergers, in order to help the homebuyers who got trapped in delayed housing projects.”

Bhushan Nemlekar, Director, Sumit Woods Limited said, "The budget for 2022 will surely bring a positive outlook for the sector and we look forward to further emphasis on tax incentives, GST waivers, and Affordable housing this financial year."

Shivam Sinha, Founder and CEO of Indiassetz said, "a balanced approach towards GST, property tax liability, and stamp duty will play a very important role in determining an average Indian’s ability to invest in the real estate sector."

"Affordable and rental housing got a big boost in the last Union Budget, with the government extending the period for extra deduction of INR 1.5 lakh for loans up to 31st March 2022. A further extension of this benefit will ensure buoyant demand for affordable housing in 2022," said Anuj Puri, Chairman - ANAROCK Group.