Real estate stakeholders are hopeful for positive outcomes from the upcoming budget, as the sector aims to build on the momentum gained in recent times. Despite facing challenges like elevated input costs and escalating interest rates, the industry is optimistic about potential measures and policies to be presented by Finance Minister Smt. Nirmala Sitharaman. The positive sentiment is tempered by the awareness of ongoing challenges, including the lingering impact of the pandemic and potential effects on the demand for affordable housing and development in tier II and III cities. The real estate sector looks forward to a balanced and supportive budgetary framework.
Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd
We eagerly anticipate the forthcoming budget announcement by Hon’ble Finance Minister, Smt. Nirmala Sitharaman, with hopes for transformative measures that will invigorate the Indian real estate sector. Acknowledging the pivotal role real estate plays in the nation’s economic growth, our foremost expectation is the long-overdue grant of Industry status to the Real Estate sector. This recognition will not only catalyze investments but also streamline regulations, fostering a more conducive environment for sustainable development. Furthermore, we urge the government to extend the benefits of Infrastructure status to the affordable housing segment, a move that will significantly boost the sector’s affordability and accessibility, aligning with the nation’s vision of ‘Housing for All.’ To alleviate cost burdens, we advocate for a reduction in GST rates on construction materials to the single digit, fostering affordability without compromising on quality.
In pursuit of efficiency, we implore the government to institute a Single Window Clearance system, expediting approvals and sanctions. This streamlined process will mitigate bureaucratic hurdles, paving the way for expeditious project execution. Lastly, recognizing the pivotal role of funding in driving growth, we urge the government to cultivate a more congenial funding ecosystem for the real estate industry. We believe these strategic measures will not only fortify the real estate sector but also contribute substantially to the economic resurgence of our nation.
Nayan Raheja of Raheja Developers
The demand for industry status for the real estate sector has been long-standing, and it is a major expectation from the upcoming budget. A single-window clearance system, a perennial request, is also seen as a time-saving measure for developers. Amidst a backdrop of high demand and limited new launches, a push for affordable housing is deemed crucial. The anticipation also extends to a potential cap on interest rates, ensuring they remain within current levels.
Kushagr Ansal, Director Ansal Housing
The real estate sector is the sturdy growth pillar in the Indian economy, and eagerly anticipates the budget to fulfill its longstanding request for industry status. Developers are hopeful for reduced interest rates and tax incentives, serving as economic alleviation during crises.
Surender Kaushik, MD, Aryan Realty Infratech Pvt Ltd
With real estate contributing 6-8% to the GDP and employing over five crore people, expectations are high for the upcoming budget. Key proposals include a separate deduction for principal repayment, a redefined threshold for affordable housing, and increased carpet area limits. We also request changes in long-term capital gains taxation, exemptions to REIT investments, and introducing a single window clearance system to streamline approval processes.
Vidush Arya, Head -Strategy, Orris Infrastructure Pvt. Ltd
We anticipate favorable norms aimed at lowering interest rates and introducing tax rebates, encouraging sustained development and investment. Additionally, we hope for increased budget allocation towards new infrastructural developments. This dual strategic focus aligns with the positive momentum already witnessed, further elevating the quality of life for the home buyers and investors.
Rajjath Goel, Managing Director, MRG Group
The much-awaited industry status award would launch the real estate market into a new phase of expansion. Simultaneously, we hope that the government takes action to resolve significant problems such as the unchecked increase in input costs, particularly for basic materials like steel and cement. A streamlined clearance system is a paramount need for enhancing the operational efficiency of the real estate sector. This reform would help us cut through various levels of bureaucracy, ensuring faster project approvals and benefiting developers and prospective homebuyers.
Amish Bhutani, Managing Director of Group 108
A pressing need exists to stimulate the affordable segment. Incentivizing purchases through measures like income tax rebates is suggested. Commercial realty, aligning with the government& entrepreneurship promotion vision, requires policy-level support. Streamlining interest rates and approval processes, akin to a single-window clearance system, is crucial to meeting the escalating demand in the real estate sector.
Ashwinder R Singh, CEO Residential, Bhartiya Urban
The real estate scene had a defining moment in 2023, setting the stage for what’s expected to be an even more dynamic 2024. With a strong economy and potential adjustments in home loan interest rates, the sector anticipates a surge in demand. To align with the government’s vision of housing for everyone, crucial issues need attention. The upcoming budget is crucial, with the top wish being industry status for real estate. Key measures like simplified clearances, tax breaks, and GST adjustments are essential. There is a call for a thoughtful plan for affordable housing, tapping into untapped potential and unmet demand. As we await the budget, all eyes are on the government’s proactive steps, hoping for a roadmap that boosts growth and resilience in the real estate sector.
Sanjay Sharma, Director SKA Group
Anticipating income tax rebates in the upcoming budget is a shared hope among developers and homebuyers alike. Such fiscal support would catalyze a more robust real estate market, acknowledging the sector’s pivotal role in driving economic resurgence. We are also hoping that the government would present its word on our longing demand for the status of ‘industry’. Being the largest employer in the country, this status would help with financial growth as well as rebates in income taxes.
Rajesh K Saraf, MD, Axiom Landbase
NITI Aayog’s forecast of the Indian real estate sector reaching a $1 trillion market size by 2030 highlights its long-term prospects. The sector looks to the government for intervention in reducing input costs, specifically for steel, cement, and fuel. We also request the government to consider reducing the GST rate on cement and initiatives to promote affordable housing through tax incentives.
Ajendra Singh. Vice President Sales and Marketing, Spectrum Metro
2023 not only brought the real estate sector into the limelight but also highlighted the role of commercial realty as a growth driver. We have huge expectations from the forthcoming budget. One of the foremost demands is the availability of GST input tax credits for commercial real estate. We would also like the government to consider conferring infrastructure status to the sector, allowing us easier access to credit and lower financing costs. Decreasing the input costs, such as steel and cement, revising depreciation rates for commercial buildings that align with current market realities, and tax incentives for investments in green buildings and sustainable development projects are other expectations from the forthcoming budget.
Ankit Kansal, Managing Director AXON Developer
2024 will be an eventful year for Indian real estate, as, after a steady run, the market is set for a further jump. Meanwhile, the government and regulatory bodies need to play a more constructive, accommodating, and facilitating role. It needs to take steps, to reduce regulatory roadblocks, fuel market demand, and support the developer fraternity with fiscal and non-fiscal impetus. Meanwhile, GOI also needs to give attention to green and sustainable real estate in India, as its time has come. There have been a few prudent steps in the past in the form of lower tax rates, fast-tracking approvals, and reduced stamp duties to support sustainable realty. However more needs to be done in terms of bigger tax breaks, supporting green financing, and allocating larger funds towards sustainable infrastructure developments.
Prateek Mittal, Executive Director of Sushma Group
We believe that the forthcoming budget will include income tax benefits for our sector, with high hopes and expectations for the return of the CLSS scheme. Anticipating a stronger real estate market, we foresee fiscal support that recognizes the industry’s critical role in economic recovery. Affordable housing remains the focal point for inclusive growth, and we eagerly await government initiatives that promote and incentivize such projects. By addressing diverse housing needs, these initiatives are expected to transform the real estate landscape, contributing significantly to the nation’s social and economic fabric.”
Tejpreet Singh Managing Director of Gillco Group
As real estate’s contribution to India’s GDP is expected to rise to 13% by 2025, the forthcoming budget is eagerly awaited for sectoral rejuvenation. Key expectations include redefining affordable housing criteria, increasing carpet area limits, and significantly boosting affordable housing.”
Mukul Bansal. Managing Director, Motiaz
2023 marked a successful year for real estate, showcasing the positive impact of low prices, low interest rates, and abundant supply. In the upcoming budget, initiatives such as raising the deduction limit under section 80C, addressing the industry status demand, and implementing a single window clearance system are crucial for realizing the country’s housing aspirations.”
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