Following the robust recovery observed in the real estate sector in 2023, the industry, while still contending with challenges like elevated input costs and increasing interest rates, is eagerly awaiting the upcoming budget presentation by Finance Minister Smt. Nirmala Sitharaman. Despite the prevailing optimistic sentiments, it is crucial to acknowledge specific challenges. The lingering threat of the pandemic persists, and a decline in income could potentially affect demand, especially in the price-sensitive affordable segment and real estate development in tier II and III cities.
Union Budget 2024
Vidush Arya, Head – Strategy, Orris Infrastructure Pvt. Ltd. said, “We anticipate favorable norms aimed at lowering interest rates and introducing tax rebates, encouraging sustained development and investment. Additionally, we hope for increased budget allocation towards new infrastructural developments. This dual strategic focus aligns with the positive momentum already witnessed, further elevating the quality of life for the home buyers and investors.”
Amish Bhutani, Managing Director of Group 108 said, “A pressing need exists to stimulate the affordable segment. Incentivizing purchases through measures like income tax rebates is suggested. Commercial realty, aligning with the governments entrepreneurship promotion vision, requires policy-level support. Streamlining interest rates and approval processes, akin to a single-window clearance system, is crucial to meeting the escalating demand in the real estate sector.”
Ashwinder R Singh, CEO Residential, Bhartiya Urban said, “The real estate scene had a defining moment in 2023, setting the stage for whats expected to be an even more dynamic 2024. With a strong economy and potential adjustments in home loan interest rates, the sector anticipates a surge in demand. To align with the governments vision of housing for everyone, crucial issues need attention. The upcoming budget is crucial, with the top wish being industry status for real estate. Key measures like simplified clearances, tax breaks, and GST adjustments are essential. Theres a call for a thoughtful plan for affordable housing, tapping into untapped potential and unmet demand. As we await the budget, all eyes are on the governments proactive steps, hoping for a roadmap that boosts growth and resilience in the real estate sector.“
Rajjath Goel, Managing Director of MRG Group said, “The much-awaited industry status award would launch the real estate market into a new phase of expansion. Simultaneously, we hope that the government takes action to resolve significant problems such as the unchecked increase in input costs, particularly for basic materials like steel and cement. A streamlined clearance system is a paramount need for enhancing the operational efficiency of the real estate sector. This reform would help us cut through various levels of bureaucracy, ensuring faster project approvals and benefiting developers and prospective homebuyers.”
Rajesh K Saraf, MD, Axiom Landbase said, “NITI Aayogs forecast of the Indian real estate sector reaching a $1 trillion market size by 2030 highlights its long-term prospects. The sector looks to the government for intervention in reducing input costs, specifically for steel, cement, and fuel. We also request the government to consider reducing the GST rate on cement and initiatives to promote affordable housing through tax incentives.“
Ajendra Singh. Vice President Sales and Marketing, Spectrum Metro, “2023 not only brought the real estate sector into the limelight but also highlighted the role of commercial realty as a growth driver. We have huge expectations from the forthcoming budget. One of the foremost demands is the availability of GST input tax credits for commercial real estate. We would also like the government to consider conferring infrastructure status to the sector, allowing us easier access to credit and lower financing costs. Decreasing the input costs, such as steel and cement, revising depreciation rates for commercial buildings that align with current market realities, and tax incentives for investments in green buildings and sustainable development projects are other expectations from the forthcoming budget.“
According to Ankit Kansal, Managing Director AXON Developer, “2024 will be an eventful year for Indian real estate, as, after a steady run, the market is set for a further jump. Meanwhile, the government and regulatory bodies need to play a more constructive, accommodating, and facilitating role. It needs to take steps, to reduce regulatory roadblocks, fuel market demand, and support the developer fraternity with fiscal and non-fiscal impetus. Meanwhile, GOI also needs to give attention to green and sustainable real estate in India, as its time has come. There have been a few prudent steps in the past in the form of lower tax rates, fast-tracking approvals, and reduced stamp duties to support sustainable realty. However more needs to be done in terms of bigger tax breaks, supporting green financing, and allocating larger funds towards sustainable infrastructure developments.”
Prateek Mittal, Executive Director of Sushma Group, expressed, “We believe that the forthcoming budget will include income tax benefits for our sector, with high hopes and expectations for the return of the CLSS scheme. Anticipating a stronger real estate market, we foresee fiscal support that recognizes the industrys critical role in economic recovery. Affordable housing remains the focal point for inclusive growth, and we eagerly await government initiatives that promote and incentivize such projects. By addressing diverse housing needs, these initiatives are expected to transform the real estate landscape, contributing significantly to the nations social and economic fabric.“
Tejpreet Singh Managing Director of Gillco Group said, “As real estates contribution to Indias GDP is expected to rise to 13% by 2025, the forthcoming budget is eagerly awaited for sectoral rejuvenation. Key expectations include redefining affordable housing criteria, increasing carpet area limits, and significantly boosting affordable housing.”
According to Mukul Bansal. Managing Director, Motiaz, “2023 marked a successful year for real estate, showcasing the positive impact of low prices, low interest rates, and abundant supply. In the upcoming budget, initiatives such as raising the deduction limit under section 80C, addressing the industry status demand, and implementing a single window clearance system are crucial for realizing the countrys housing aspirations.“