The forthcoming Union Budget 2024-25 provides a critical chance for the Indian real estate industry to tackle various obstacles and stimulate growth, particularly in the affordable and luxury housing sectors. With the conclusion of the longest election in India’s history, attention has now shifted to the new budget announcements. The real estate sector is seeking measures to enhance affordability and boost housing demand.
Vikas Aggarwal, COO, Worldwide Realty said, “As the Union Budget approaches, we anticipate significant allocations towards infrastructure development to bolster connectivity and economic growth. A strong focus on affordable housing is crucial, as it addresses the pressing need for quality living spaces for the masses. Enhancing the PMAY scheme and increasing tax relief for first-time homebuyers would stimulate demand and make homeownership more accessible. Investments in sustainable and smart city projects should be prioritized to align with urbanization trends and environmental goals. These measures will accelerate real estate growth and contribute to the nation’s overall socio-economic development.”
Mohit Mittal, CEO of Mores Techno a tech-based real estate advisory firm said, “As a real estate expert, I anticipate several key measures in the upcoming Indian Union Budget that could positively impact the sector. Increased budget allocations for affordable housing, extended PMAY benefits, and enhanced tax benefits for homebuyers could stimulate demand. Greater tax relief for first-time buyers, increased deductions on home loan interest, and additional Section 80EEA incentives would encourage investments. Lowering GST rates for under-construction properties would reduce costs and boost sales. ‘
Continued focus on infrastructure development is crucial for enhancing connectivity and property values. Promoting REITs and InvITs with additional tax benefits would attract more investments. Improving NBFC liquidity and financial stability is essential for sustained funding. Tax incentives for green buildings can promote sustainability and attract eco-conscious buyers. Reviving stalled projects through financial support or takeovers by stable developers would boost market confidence. Lowering stamp duty and registration charges would reduce transaction costs and stimulate market activity.
A balanced approach addressing all stakeholders’ needs is essential for sustainable growth, enhanced affordability, and improved market sentiment.