As we approach the impending Union Budget of 2024, voices within the real estate industry resonate with expectations, placing a distinct focus on the promotion of affordable housing and the scrutiny of interest rates. All eyes turn toward Union Finance Minister Nirmala Sitharaman, slated to reveal the Interim Budget on February 1, as the industry anticipates strategic measures that will delineate its path in the upcoming fiscal year.
Stakeholders underline the persistent clamor for industry status, a pivotal factor in garnering recognition and ensuring sustained growth. Nayan Raheja, the representative of Raheja Developers, underscores the indispensability of an expedited single-window clearance system, a facet deemed critical for the facilitation of developers.
The rallying cry for government intervention extends to the realm of tax incentives, with industry players vehemently advocating for a heightened focus on affordable housing. Their aspirations hinge on budgetary measures addressing interest rates, with a keen eye on aligning them with the prevailing dynamics of the market. Yash Miglani, the Managing Director of Migsun Group, paints a vivid picture of the real estate sector as a robust pillar of growth in the Indian economy. He eloquently articulates the sector’s supplication for industry status, diminished interest rates, and tax incentives as a form of economic succor during crises. Miglani also accentuates the urgency of curbing input costs, particularly for materials such as steel, cement, and fuel.
In acknowledgment of the substantial contribution of the real estate sector to the GDP, ranging from 6 to 8 percent, and its role in employing a myriad of individuals both directly and indirectly, Surender Kaushik, the Managing Director of Aryan Realty Infratech Pvt Ltd, proffers key proposals. These include the implementation of a separate deduction for principal repayment, a redefined threshold for affordable housing, and an augmentation of carpet area limits.
What lies at the heart of expectations for Union Budget 2024 in the real estate sector are comprehensive reforms in long-term capital gains taxation, exemptions for Real Estate Investment Trust (REIT) investments, the advent of a streamlined single-window clearance system for approval processes, tax incentives tailored to benefit home buyers and investors, and a concerted push for diminished interest rates.
