India’s economy has displayed impressive resilience and sustained strong macroeconomic health despite global economic challenges. As India prepares for the Union Budget 2024, the real estate sector, which has experienced robust growth and demand recovery post-pandemic, is anticipated to receive a boost to further drive its expansion.

The government’s steadfast dedication to the ‘Housing for All’ initiative underscores the necessity for substantial fiscal backing to accomplish its goals. “With indications of controlled inflation, promising growth prospects, and the anticipation of a favorable monsoon, there is ample room for growth. The eagerly-anticipated Union Budget, which outlines the government’s financial strategy, is eagerly awaited by both the industry and individuals. The real estate sector is hopeful for specific announcements that could benefit homebuyers and the industry,” says Dr. Samantak Das, Chief Economist and Head – Research and REIS, India, JLL.

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Here we take a look at India’s leading property developers’ key expectations from the Budget 2024:

Kalyan Chakrabarti, CEO, Emaar India: “As we await the upcoming union budget, we are optimistic that it shall be akin to the interim budget auguring growth and development. We continue to seek an industry status for the real estate sector, which would represent a significant stride on the infrastructure front by the government. This move would enable developers to lower borrowing costs and pass on the benefits to the customers. As key stakeholders in the sector, one of our primary expectations is a reduction on GST rates on construction materials to enhance affordability and make home-buying more accessible. We expect policies that will promote financial inclusivity and incentivisation, such as reforms in taxation and financial accessibility. Additionally, optimising the process of land acquisition and registration of properties to make it more transparent and efficient, further encouraging development and investment in the sector. We are hopeful that the budget will positively contribute to the real estate sector’s mission of inclusive growth, sustainable development, and job creation in the coming years.”

Naveen Gadde, MD, Navanaami: “The real estate sector faces significant challenges due to the rising costs of land and construction materials. These escalating expenses have made it difficult for developers to maintain the feasibility of launching new projects, which has contributed to shooting the cost of property for the middle class. We hope that the home loan rate of interests will be reduced to push demand and make good properties available for the real estate sector. The government can also grant stamp duty concessions. We hope the budget will introduce fiscal incentives and policy reforms that will help stimulate demand and ease liquidity constraints. Such measures are crucial for enabling developers to continue providing affordable housing options to a broader segment of the population. By addressing these challenges, the government can ensure the growth of the real estate sector and make homeownership more accessible to many aspiring homeowners. Additionally, we expect initiatives that promote sustainable development and enhance the overall ease of doing business in this sector.”

Rishi Raj, COO, Max Estates: “While the implementation of RERA has brought much-needed transparency and accountability to the real estate sector, developers believe that granting industry status to real estate could further catalyze growth and investment. There is a pressing need to simplify procedures and foster innovation within the sector. We are hopeful that the upcoming budget will address these needs by introducing policies that promote sustainable practices and encourage the use of advanced technologies in construction and project management. Such initiatives will not only enhance efficiency but also ensure the long-term growth and modernization of the real estate industry. Additionally, with respect to GST, allowing for Input Tax Credit for built to lease commercial real estate projects is not only consistent with core principles of GST but also will further aid development of Grade A+ commercial developments critical to further strengthen India’s position as hub for global services (e.g., Global Capability Centres). By addressing these critical issues, the government can create a more supportive environment for real estate development, benefiting both developers and homebuyers in the Delhi NCR region and beyond.”

Anuj Munot, CEO & Founder, UrbanWrk: “The Indian real estate sector has shown strong performance in recent quarters, making the 2024 Union Budget a crucial moment for the industry. Anticipated reforms are expected to streamline processes, boost transparency, and drive growth. With NITI Aayog projecting the sector’s market size to hit $1 trillion by 2030, it is imperative for the government to address key issues such as high input costs for materials like steel and cement. Lowering the 28% GST on cement and granting real estate industry status can reduce construction expenses and facilitate developers in accessing loans at lower interest rates. Moreover, the implementation of a single-window clearance system will expedite project approvals, creating a more efficient and investor-friendly environment. These initiatives will not only stimulate growth but also significantly contribute to the country’s GDP, increasing the sector’s share from 8% to 13% by 2025.”

Ashok Singh Jaunapuria, MD and CEO of SS Group: “We are eagerly awaiting the Union Budget 2024, hoping for tax reforms, increased incentives for affordable housing, greater investment in urban infrastructure, and more efficient regulatory procedures. These measures will boost the growth of the real estate sector, making homeownership more accessible and sustainable. It is recommended that the government raise the interest deduction limit to promote homeownership. By improving tax benefits, potential homebuyers will be more motivated to invest in real estate, enhancing their financial security and stimulating market expansion. Higher deductions on home loan interest could make owning a home more financially feasible for many, potentially leading to a surge in demand for residential properties. Furthermore, increased investment in urban infrastructure can enhance connectivity and quality of life, making urban areas more appealing to residents and investors. Streamlined regulatory processes will assist developers in completing projects more efficiently, reducing costs and delays.”

Manas Mehrotra, Founder, 315Work Avenue: “The country is seeing a new office culture given the change in work patterns across the world and new preferences of the workforce. Understandably, the coworking industry has become more relevant than ever with the demand surging significantly in the recent times owing to its affordable pricing options and flexible work culture. Large enterprises too have shifted gears to coworking space as they embraced the hybrid work model to suit their organizational requirements. India continues to be the fastest growing flex office market in the APAC region and is set to account for one-fifth of the office market by 2030. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming Union Budget that can further accelerate growth of this sector.

In recent years, the entrepreneurial landscape has undergone a significant change and coworking spaces have emerged as a transformative force in India’s startup ecosystem. Some of the measures that we could look forward to include lower GST rate for small-scale coworking clients. This will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. The salary upper limit of 25k could be enhanced to 40k and timeline from 3 yrs to 5 yrs to enable start-ups/coworking entities to enjoy the benefit of sec 80JJAA as these industries are generating a greater volume of employment. Input tax credit under GST is an important issue that concerns coworking sector. We expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs.”

Ramani Sastri, Chairman & MD, Sterling Developers: “The real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. Hence, the upcoming budget should introduce measures that will bolster this economic context. The Indian real estate sector continues to scale new heights in 2024 driven by positive market sentiments. economic expansion, urbanization, evolving lifestyles, rising disposable incomes, better employment opportunities, increased business activity and government policies amongst others. The desire for homeownership remains undeterred among consumers, as residential sales continue to breach previous highs. This year, the demands go beyond the usual expectation of single-window clearance and industry status, which could unlock financial advantages and streamline project approvals. There is an express need for more tax sops for both homebuyers as well as investors. The government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to housing demand, reduce GST on under-construction properties and effect adjustments in raw material pricing. For a large section of the population, affordability remains the biggest challenge and hence there should also be expansion in the definition of affordable housing as this would expand the benefits for homebuyers and hence boost the end-user demand. Any tax exemption from rental income will also encourage greater investment in residential real estate.”

Dinesh Gupta, Secretary, CREDAI Western UP: “Boosting the real estate sector with tax incentives, improved tax structures, and a single-window clearance policy will encourage further investment in the real estate sector from both domestic and foreign sources. Furthermore, tax reforms that lower income taxes for both corporations and individuals, simplify tax legislation, offer targeted incentives, expand the SWAMIH stress fund, and lower the GST rates on building materials will boost the building industry and improve the situation for real estate players. The combined effect of the aforementioned reforms will raise the amount of money accessible to taxpayers, enabling them to buy real estate more enthusiastically and ultimately speed up the nation’s economic growth.”

Sarthi Goel, CEO of Civitech Group: “The real estate industry expects a number of significant changes to promote efficiency and growth. Real estate will attract investors and simplify rules if it is given industrial status. Simplifying the clearance process with a single window can speed up project approvals, cut down on delays, and improve project execution in general. Moreover, higher house loan interest rate deductions are essential for expanding access to luxury properties, which would boost demand and foster a healthy market environment. These programs not only help the industry reach its growth goals, but they also significantly improve the state of the economy as a whole by creating jobs and stimulating infrastructural development.”

Himanshu Garg, Director, RG Group: “To improve housing accessibility, tax slabs should be raised and limit of affordable housing should be revised. Industry experts are in favour of raising the housing affordability cap in metro areas, especially in the MMR and NCR regions, from ₹45 lakhs to ₹75 lakhs. As a basic need of person and safe investment, home loan rates should be low and the limit of the Credit-Linked Subsidy Scheme (CLSS) can also be increased. Aside from that, simplifying GST is essential to lower expenses and improve affordability for homebuyers. Additionally, easing FDI regulations will draw in international capital, promoting growth and innovation in the luxury market.”

Bhavesh Kothari, Founder & CEO, Property First: “We are optimistic and expect the upcoming budget to bring in massive transformations. We urge the Finance Minister to implement tax reliefs in terms of reduction in GST rate along with an input tax credit on under-construction properties. Besides, anticipation is high that home mortgage rates will drop considerably to pave the way for renewed growth. Granting industry status to the sector would be another significant step that would catalyse growth and contribute to the nation’s economy. Also, we expect the government to continue focusing on more infrastructure development in highways, metro lines, planned satellite cities, etc as it will help drive housing demand across the country.”

Madhusudan G, CMD, Sumadhura Group: “We expect the Union Budget 2024-25 to introduce progressive reforms to meet the rising demand for residential and commercial spaces. Our top priorities include tax breaks for affordable housing projects to boost stagnant sales in the sector. Also, a revival of the Credit-Linked Subsidy Scheme will make homeownership more accessible. We also expect tax incentives and infrastructure enhancements to boost urban living standards and drive growth in emerging areas. Simultaneously, we expect the government to grant industry status to real estate, a long-standing demand that could drive fresh investment and growth.”

Pyush Lohia, Director, Lohia Worldspace: “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.”

Anantharam Varayur, Co-founder of Manasum Senior Living Homes: “With the number of elderly people rapidly growing, the senior living industry is set for major growth. Projections show that the proportion of elderly individuals aged 60 and above is expected to reach 19.5% by 2050. 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 affordability of these housing units. Further, on the income tax front, senior citizens should be given some relief at this later stage of their life, given that they have been responsible citizens and paid taxes throughout their lives. Among other reliefs, the budget should provide relaxation on services and purchases in real estate. Additionally, infrastructure development in Tier-II and Tier-III cities is key for the sector.”