1) Amit Goyal, Managing Director, India Sotheby's International Realty
In its recent Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) projected a GDP growth rate of over 7%. Maintaining this growth rate in a year when several global economies are struggling should be a major focus of the upcoming Union Budget.
With the NDA government returning to power for the third consecutive term, we anticipate a bold, growth-oriented budget that charts a plan for the next five years. We expect announcements that will encourage capital investments and increase foreign direct investment (FDI) inflows into India. In the real estate sector, it is crucial to sustain demand for homes, as housing acts as an accelerator for over 200 ancillary sectors.
One significant measure that has been pending for a long time and would benefit both the industry and home buyers is the introduction of a standalone deduction for home loan principal repayment, along with raising the tax breaks on the interest amounts of home loans from Rs 2 lakh to Rs 5 lakh. This move would help mitigate the impact of increased home loan EMIs and provide much-needed relief to home buyers. There is no better time than now to implement this change, which would provide much-needed relief and stimulate growth in the housing market
2) Shubhi Jain, Principal Partner & Head of CRM, Square Yards
The real estate sector is a cornerstone of our economy, serving as one of the largest employers. We eagerly anticipate significant reforms in the upcoming budget under the new government. Securing industry status will unlock a plethora of legal and administrative benefits, along with much-needed tax incentives. Also, while government’s focus on affordable housing under PMAY is commendable, recalibrating strategies in light of escalating construction costs is imperative for sustained inclusiveness and effectiveness. Moreover, enhanced tax reliefs and increased deductions on home loans, currently capped at INR 2 lakhs, are pivotal in stimulating demand and supporting prospective buyers. With these measures in place, the real estate sector is poised to contribute meaningfully to India's journey towards a 5 trillion-dollar economy.
3) Shrinivas Rao, FRICS, CEO, Vestian
“We anticipate a budget that tackles pressing issues, boosts demand, and drives sustainable growth. As per the announcements in the interim budget, it is evident that the government will continue to focus on infrastructure development to make India a USD 5 Tn economy in the upcoming years and turn the country into a 'Viksit Bharat' by 2047. To achieve this goal, the real estate sector is likely to play a pivotal role.”
Mr. Rao further added, “After resuming a third term, the government has already announced the construction of 3 crore new units under PMAY. This shows the government’s commitment towards the real estate sector. Demand for residential units is expected to increase further, if the government increases tax exemption limits for home loans in the Union Budget 2024-25. Moreover, granting industry status to the real estate sector would ease availability of funds and increase participation of foreign investors.”
4) Badal Yagnik, Chief Executive Officer, Colliers India
“The real estate community looks at the upcoming budget with optimism, seeking a strategic roadmap that aligns well with evolving needs of stakeholders including end-users developers & investors. Housing, infrastructure development, sustainability and digitization will remain at the core of the budget, which will go a long way in supporting real estate growth across segments in long term. EV infrastructure, renewable energy and green financing will continue to remain in focus creating a strong base for a sustainable future. Incentivisation of green buildings through minimum alternate tax or tax breaks similar to the infrastructure sector will be particularly beneficial. Meanwhile, retail investors are calling for additional rationalising of the capital gains tax structure. The Union Budget 2024-25 should explore initiatives to boost greater retail engagement in REITs and InvITs. Moreover, alterations to personal tax slabs have the potential to fuel consumption across various sectors, including real estate assets and allied sectors.”
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