legal advice - Real Estate Guru
Last year, there was significant growth in the real estate sector.
For the momentum to continue this year as well, experts suggest some measures to be taken in the central budget.
Last year, the Indian real estate sector grew beyond expectations. Demand, supply, and occupancies have seen significant growth in both the housing and commercial sectors. In this context, the same trend will continue in 2024.
Market experts suggest that the Centre should focus on key elements for long-term growth. Vasavi Group, CMD Yerram Vijay Kumar wants the government to reduce the GST rates, give incentives to affordable houses, and bring a single window system to give quick approvals in order to fast-track projects, along with increasing allocations in the budget. It is stated that if the allocations for the creation of infrastructure are increased, the result will be a direct impact on property value and demand. Prashant Rao, director of Poulomi Estates from Hyderabad, said that the budget should focus on tax reforms and the reduction of GST rates, so it will increase the demand for real estate, attracting many people to invest in it more. He also said that the single-window system is very useful for speeding up the projects. He revealed that he is waiting for the government’s cooperation to take the real estate sector towards more sustainable growth.
Many developers are expressing concern that there is a possibility of increasing the tax burden and stamp duty in the central budget. It said that properties in the category of affordable houses are likely to be taxed at 25 to 30 percent, and the developer will have to pay 18 percent GST. Janapriya Engineers Chairman K. Ravinder Reddy said that despite the demand for affordable houses, developers are reluctant to enter it due to these factors. Therefore, the government should give priority to this in the upcoming budget. It felt that the intervention of the Centre was necessary to ask the state governments to do away with stamp duty and set up a unified agency for streamlined approval processes. SMR Holdings said that they want to reduce housing interest rates and repo rates. According to Section 24 of the Income Tax Act, increasing the tax concession on home loan interest from Rs. 2 lakh to Rs. 5 lakh will further boost housing demand, said MDS Ramreddy.
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