The real estate industry in India is expecting several measures to be announced in the upcoming interim budget that will support the growth of the sector. One key expectation is an increase in the tax deduction on home loan interest rates from Rs 2 lakh to at least Rs 5 lakh. The industry is also calling for industry status for the housing sector and a single-window clearance system to streamline the approval process for housing projects.
In 2023, the real estate sector in India experienced strong growth, with record-breaking sales of residential properties. The top seven cities in India saw a sale of approximately 4.77 lakh housing units, and the sales figures for newly launched homes reached close to 4.46 lakh units. The surge in demand is expected to continue in 2024, driven by high economic growth and the anticipation of a decrease in home loan interest rates.
However, the affordable housing segment has been negatively impacted by the pandemic, with a decline in overall sales. To revive this segment, the industry is calling for significant benefits such as tax breaks to be extended to developers and consumers. The government is also being urged to adjust the qualifying cost of properties within the affordable housing segment to make them more affordable to the target clientele.
NAREDCO, a real estate industry body, has requested a Rs 50,000 crore fund in the upcoming budget, along with other budgetary support and relaxations. The fund would be used to provide support to homebuyers and the real estate industry. It is hoped that these measures will help achieve the goal of providing “housing for all” in India.
The outcome of the upcoming general elections will also have a significant impact on the demand for residential real estate, as the results will shape the economic and political landscape of the country. Overall, the real estate industry has a positive outlook for 2024 but remains cautiously optimistic about the measures that will be announced in the interim budget.
