Union Budget 2024: What Real Estate Players Want From FM Nirmala Sitharaman

Budget 2024 Expectation For Real Estate: Many interest stimulants previously extended to buyers and developers of affordable housing have expired in the last two years.

Finance Minister Nirmala Sitharaman will be presenting the first full-year Budget of the Modi 3.0 government on July 23, 2024. While all eyes will be mostly on the soaps for taxpayers and the common man, the real estate sector has also been hopeful of positive moves. Anuj Puri, Chairman – ANAROCK Group, said that the real estate sector pins renewed hope on the Modi 3.0 regime. 

"Expectations are high for tax reliefs and other sentiment boosters. The future of the overall industry also depends on unfettered infrastructure deployment to support and improve urban living standards as well as to develop and promote newer areas. Many interest stimulants previously extended to buyers and developers of affordable housing have expired in the last two years. This important segment must be revived with high-impact measures like tax breaks - for developers so that they will focus more on affordable housing, and for buyers to improve affordability," he said.

Check Out What Industry Players Says About Their Budget Expectation

Deepak Kapoor, Director, of Gulshan Group, said “With NITI Aayog projecting the Indian real estate sector to reach a $1 trillion market size by 2030, the long-term outlook is promising. However, decisive government action is needed, and the sector is hopeful for favourable measures in the upcoming budget. Reducing input costs for steel, cement, and fuel is critical. The GST on cement, currently at 28%, should be lowered. Additionally, there is a need to promote affordable housing and introduce tax incentives to help achieve the nation's housing objectives."

Sheeshram Yadav, Founder & MD, Yugen Infra, said, "Real estate stakeholders express optimism regarding the forthcoming budget. The industry anticipates tax reliefs, affordable housing incentives, and measures aimed at enhancing liquidity. Additionally, infrastructure development and urban planning advancements are expected to invigorate the market further, fostering growth and economic dynamism."

Sandeep Chillar, Founder & Chairman of Landmark Group, said, "The real estate sector expects the government to look into its long pending demands of industry status and single window clearance. The sector is experiencing significant growth with increasing demand across various segments. To further boost the sentiment, the government must consider introducing policy reforms to attract and amplify foreign and domestic investments. This will greatly benefit the sector's growth and contribute to the overall economic development of the country. Besides, revision of the taxation policy will also be one of the crucial factors that the government should consider in the upcoming budget as it will encourage millions of first-time homebuyers.”

Anantharam Varayur, Co-founder of Manasum Senior Living Homes, said, "Currently, India has 150 million elderly people, which is expected to reach 230 million in the next 10-12 years. However, the penetration rate of senior living properties is only 1% in India with only 18,000 units across the country, compared to 6% in the US and 11% in the UK. There is ample scope to meet the supply gap and the ever-increasing demand. There is a need to look at providing subsidies or tax deductions for low- and middle-income seniors in order to increase the affordability of these housing units. Further, on the income tax front, the senior citizens should be given some relief."

Piyush Lohia, Director, Lohia Worldspace, said, “We are hopeful that the upcoming budget will bring significant changes. We are particularly looking for increased investment in infrastructure and meaningful tax reforms. Easing tax provisions on housing would be a significant step, making homes more affordable and driving demand. The deduction limit on interest paid on home loans needs to be raised from the current cap of Rs 2 lakh per annum. These measures would turn out critical not just for the sector but for broader economic growth, job creation, and supporting small businesses. A balanced approach will pave the way for sustainable development.”

Ashish Kukreja, Founder & CEO, of Homesfy.in, said, "The dedicated 'housing for middle-class scheme' would be a welcome move as it could significantly empower the middle class to build or buy their own homes. However, first-time buyers in the affordable segment must be incentivized. Initiatives like stamp duty offers, similar to those introduced during the pandemic, and reviving affordable housing through measures like reinstating the Credit-linked Subsidy Scheme (CLSS) under PMAY are necessary to bridge the widening gap. The government may also consider providing tax breaks for developers to incentivize affordable housing and for buyers to improve affordability."

Nayan Raheja, Raheja Developers, said, “The real estate sector expects the government to ensure by taking certain initiatives at the policy level in its forthcoming budget. Industry status and single-window clearance are long pending demands, and we hope for affirmative action on these. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector is hoping for. We are hopeful that the budgetary announcements will further boost the sector's potential and enhance its share in the country's economy.”

Sachin Gawri, Founder and CEO, Rise Infraventures said, “The Indian real estate sector is experiencing rapid expansion fueled by increasing demand for residential properties. With the sector projected to contribute 13% to India’s GDP next year, there is strong anticipation for the upcoming budget to support its growth trajectory. High taxes on materials such as cement and steel have inflated housing project costs. The 28% GST on cement is a particular concern, and its rationalization is crucial to meet the surging demand. Additionally, the sector has longstanding requests for a single-window clearance system and industry status. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector hopes for."