Budget 2024: Industry status, more tax deductions, affordable housing boost among key expectations of real estate sector
According to real estate industry experts, the government needs to take a hard look at adjusting the qualifying cost of properties within cities’ affordable housing segment.
- Real estate market in India witnessed strong growth in 2023 with record high home sales and launches.
- The Nifty Realty index spiked about 94% in the last year.
Industry status for the housing sector and single-window clearance for housing projects are standard expectations from the real estate sector in the upcoming Union Budget 2024. Experts believe that the government should increase the maximum deduction for home loans to at least ₹5 lakh to stimulate a more robust market for housing. Additionally, the real estate industry expects the Finance Minister to provide tax breaks to encourage developers to construct more affordable housing. The government should also modify the qualifying standards for affordable housing, as the current definition does not adequately reflect the housing costs in metropolitan cities. It is suggested that the budget should be raised to at least ₹60-65 lakh for large cities to make more homes accessible to buyers. Furthermore, the industry expects the government to release certain lands owned by Indian Railways, Port Trusts, and the Department of Heavy Industries to address land shortage for affordable housing. Releasing these lands at a low cost specifically for affordable housing will significantly lower real estate prices overall.
Overall, the real estate sector expects the Union Budget 2024 to provide support for affordable housing and make housing more accessible to buyers by increasing tax deductions and modifying qualifying standards. These measures would contribute to the growth and development of the real estate market in India.
