The real estate market experienced remarkable growth in 2023, surpassing expectations and establishing new records. As the sector prepares for 2024, all signs point to sustained and robust expansion, boosting the nation’s economy and investor confidence. The real estate sector anticipates the upcoming budget to include measures supporting growth, such as simplifying clearances, providing fiscal incentives, granting industry status, and more. The industry looks forward to proactive steps from the government to stimulate growth and contribute to the nation’s economic development.
Expectations are high for the upcoming Union Budget 2024, with the developer community outlining its wishlist for government consideration.
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Ramesh Ranganathan, CEO, K Raheja Corp Homes said, “elevating the Real Estate sector to industry status is key. We anticipate impactful policies, fostering industry growth with tax incentives measures making it more lucrative for homebuyers. The holding period for residential properties as a long-term capital asset should be shortened to 12 months, aligning with market dynamics.”
“In line with the government’s ‘housing for all’ focus, boosting home purchases through elevated tax deductions both for developers and buyers is crucial, making home ownership more affordable and enticing,” Ranganathan added.
Ashok Singh Jaunapuria, MD & CEO, SS Group, said “as we stand at the threshold of the dawn of a new financial year, we are eagerly awaiting the release of the Union Budget 2024-25.”
“With the Indian real estate peaking in 2023, we are confident that this buoyant trend will continue well into 2024 as well in the backdrop of a healthy macroeconomic outlook, an uptick in the job market and stable lending rates. This year could be the year of reckoning if the government can focus on the affordable housing segment. Through carefully curated policy impetus, fiscal support, the government should look at giving a boost to this segment which will bridge the widening housing gap,” Jaunapuria added.
He also mentioned that “another important element we are seeking from the Union budget 2024 is to increase the home loan interest rebate from the existing Rs.2 lakh to Rs.5 lakh. This will attract genuine home buyers and boost demand.” “Finally, a single-window clearance to reduce roadblock and speed up projects together with RERA amendments will be a great boon,” he said.
“We anticipate a growth-oriented budget that positions real estate as a driver of progress, fostering sustainable development, incentivizing innovation, and supporting the housing segment with significant tax breaks. The industry flourished in 2023, and we hope the Union Budget includes provisions for a single window clearance system to enhance transparency and efficiency. Granting ‘Industry’ status to the real estate sector is also a long-awaited demand,” says Santosh Agarwal, Executive Director and CFO, Alphacorp.
Despite global economic uncertainties, the sector has displayed remarkable resilience and is poised for growth through favorable government policies.
S K Narvar, Group Chairman, Trident Realty, is optimistic about impactful measures in the upcoming Union Budget. He suggests, “The budget should include fiscal stimulus and personal tax relief, such as increasing the tax rebate on home loan interest rates from Rs. 2 lakh to Rs. 5 lakh. This would significantly benefit millions of first-time homebuyers. Additionally, the government should continue focusing on Tier 2 & Tier 3 cities, providing more infra-development funds to benefit a larger number of projects in these areas. Revising the definition of affordable housing, both in terms of value and size, would cater to the population returning to their hometowns and boost housing demand in new markets.”
The commercial realty segment, encompassing office and retail space, plays a crucial role in the sector’s growth. Hoping for strategic policy interventions, Aman Sharma, Managing Director and Founder of Aarize Group, emphasizes, “The 2024 Union Budget is eagerly awaited. Stable regulatory reforms that streamline approvals and permitting processes, reducing delays in project execution, could further fuel the momentum observed in the retail leasing sector, which surged by 65 percent in January-June 2023 according to CBRE South Asia.”