Real estate experts believe that the expectations before the budget in the real estate sector are like seeds planted in good soil. They think that each new policy announced in the budget could lead to many opportunities. Investors, developers, and homeowners are all waiting eagerly for the budget announcement. They hope that the budget will not only solve problems but also help the real estate industry grow.
The Indian property market reached its highest point in 2023. Industry specialist predict that the positive feelings in the market will keep going strong in 2024. This is because the big picture of how the economy is doing looks good, lending rates are staying steady, and there are a lot of good jobs available.
Through this blog, we’ll take a look at the major expectations from budget 2024. So, read on!
Key Expectations of Real Estate Sector from Union Budget 2024
On February 1, Finance Minister Nirmala Sitharaman talks about the budget for 2024, but it’s just a temporary plan until they figure out the final details.
1.Affordable Resedential Property
The government should pay more attention to affordable housing in the next budget to help the housing market and fill the housing gap. Affordable housing, which used to be a big part of housing sales before the pandemic, has seen a drop in sales.
Now it’s only 20% of total sales, compared to the previous 40%. By giving special support, tax breaks, and financial help, the government can help this part of the housing market grow again. This is important for closing the gap in housing availability.
2.Real Estate Market Status
The real estate sector in India has been steadily growing, and the government should do more to help it grow even more. This sector is really important for the economy because it contributes about 8% to the GDP and creates a lot of jobs. Over 200 other industries also depend on it. So, the government needs to take active steps to increase demand, lower costs, and make it easier to follow regulations.
In the next budget, they should consider giving real estate the same status as other industries, as well as making it easier to get approvals, giving tax breaks, and fixing the GST system. This would not only help the real estate industry but also benefit other related industries.
3.Increase Rebate of Home Loan Interest
To help the housing market grow, experts think it’s important to raise the amount of money people can save on their taxes when they take out a home loan. They suggest increasing it from ₹2 lakh to at least ₹5 lakh. This change would encourage real homebuyers and make more people want to buy homes.
Also, they say the government should consider lowering the interest rates on loans, giving tax breaks to property developers, and finding different ways to fund housing projects. We need to make some changes to help people buy cheaper homes, especially since sales dropped by 20% in 2023 because of the pandemic- said by Hari Kishan Movva, Senior Vice President, SILA.
It’s really important to bring back old incentives, like tax breaks to help people afford houses. We should also change the rules for who can get these benefits, looking at how much money people make, the size of their property, and how much it costs. For example, we could make it easier for people in cities like Mumbai, Kolkata by increasing the maximum budget to INR 85 lakh. This would make it easier for more people to get help from the government and pay lower taxes.- Harikrishna added.
Final Words
In the Union Budget 2024, the real estate sector hopes for measures to boost affordable housing, such as reinstating tax incentives and adjusting eligibility criteria. We expect support to revive sales affected by the pandemic and broader accessibility to government subsidies. These changes can significantly benefit the Real estate sector’s growth.
Srijan Realty, one of the top residential developers in Kolkata is expecting that Union Budget 2024 will positively effect on the Kolkata real estate market. To get more info about real estate trend, stay tuned with us!
