As Union Budget 2024 approaches, the real estate sector stands at the threshold of anticipation, with stakeholders eagerly awaiting transformative measures that could shape the industry’s trajectory. In this article, we delve into key insights highlighting the imperative need for prioritizing the real estate sector in the upcoming budget, considering its pivotal role in India’s economic growth.
The real estate industry is a cornerstone of India’s economic growth, contributing significantly to employment generation, GDP, and overall economic development. Stakeholders ardently anticipate the grant of industry status, recognizing the sector’s importance. This status is poised to attract increased investments and streamlined regulations, fostering sustainable and robust development.
Streamlining bureaucratic processes is crucial for the real estate sector. With more than 30 approvals required for a project, stakeholders anticipate the implementation of a single-window clearance system. This measure aims to expedite project approvals, reduce delays, and enhance overall efficiency in project execution.
Despite reduced GST rates on residential and affordable housing, the absence of input tax credit hampers developers’ ability to offset taxes, impacting project costs. The appeal is for revised GST input tax credit rules, providing transparency and potentially reducing property prices, thus expediting projects that faced cost overruns.
To stimulate the housing market, stakeholders call for a revision in the Income Tax Act Section 24’s home loan interest rate rebate. Advocating for an increase to a minimum of ₹5 lakh, this proposal aims to attract genuine homebuyers and significantly boost demand.
Developers seek a more conducive financing environment with streamlined processes and increased support from financial institutions. Policies encouraging smoother access to funds are expected, promoting sustainable and long-term growth within the sector.
Anticipation is high for policy interventions promoting sustainable development, foreign direct investment, and streamlined regulatory processes. A well-crafted Budget is expected to stimulate demand by offering incentives for both homebuyers and developers, creating a harmonious ecosystem for the real estate sector.
Reflecting on recent repo rate revisions, calls are made to decrease the down payment burden and ease home loan eligibility criteria. This aims to make credit more accessible, encouraging a positive trend in home-buying.
A shift of focus towards urban infrastructure development is sought, with expectations of increased allocations for projects to drive real estate growth in urban areas.
Stakeholders hope for a reduction in stamp duty rates for property registration to support the mid-income and common man, making property transactions more affordable.
Optimism surrounds reforms aimed at making land acquisition and Change of Land Use (CLU) processes more inclusive and fast-track. These reforms aim to reduce project timelines and minimize uncertainties.
Supporting the real estate sector aligns with the government’s vision for urban development, spurring infrastructure growth in urban areas and ensuring well-connected, sustainable cities.
Prioritizing the real estate sector in the upcoming Budget is viewed as an investment in India’s economic resilience, job creation, and sustainable development. It aligns with the nation’s aspirations for inclusive growth and addresses critical housing needs, contributing to the overall well-being and progress of the country.
In conclusion, the real estate sector eagerly awaits transformative measures that will invigorate the industry, address the diverse needs of both developers and homebuyers, and contribute significantly to India’s economic growth. The upcoming Union Budget is poised to play a pivotal role in shaping the future of the real estate landscape.
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