- The real estate industry is hopeful for positive decisions in the budget.
The central budget is just around the corner. As with various sectors, there’s hope across all circles that the NDA government at the Centre might announce some beneficial measures. Similarly, the real estate sector is also anticipating some positive decisions in the budget. Being one of the largest contributors to the nation’s GDP and a significant source of employment, the real estate industry is hoping for favourable policies in the upcoming budget. Specifically, the sector is looking forward to measures that would make housing more affordable, simplify taxes, and boost the flow of investments into the real estate market. Ahead of the central government’s budget announcement in Parliament on February 1, industry experts have shared their opinions on what the real estate sector expects. Let’s take a look at what they have to say.
Pradeep Agarwal, the founder and chairman of Signature Global (India) Limited, expressed hope that the budget will bring reforms to continue the growth of the real estate sector. He suggested increasing the current tax exemption on home loans, which is set at Rs 2 lakh, to Rs 5 lakh, in line with rising property prices and construction costs. He believes this would provide significant relief to homebuyers and directly benefit millions of people, while also boosting demand in the real estate sector.
Furthermore, the long-standing demand for granting “industry status” to the real estate sector was discussed. Experts suggest that providing this status would energize nearly 200 ancillary industries and encourage job creation. Additionally, it would enhance skill development, expand economic activities, and strengthen the position of real estate as a key pillar of India’s economy.
As India aims for its vision of a developed nation by 2047, experts emphasise that the real estate sector is ready to play its part. They recommend strategic reforms like simplifying GST input tax credit regulations to reduce developers’ tax burdens. This could potentially stabilize property prices, making homes more affordable. Additionally, they propose offering subsidies of up to Rs 5 lakh on home loans of Rs 1 crore to urban and semi-urban buyers, providing financial support to them.
Including properties priced up to Rs 1 crore in the affordable housing category would further strengthen the government’s “Housing for All” vision. Experts believe that implementing these reforms would enhance the real estate sector’s capacity and drive the country’s development goals forward.
Various sectors, including real estate, are hoping for effective reforms in the upcoming budget to boost economic activities. The real estate sector, being one of the largest contributors to GDP, plays a crucial role in fostering growth. Akash Khurana, President and CEO of Krisumi Corporation, emphasised the need to increase the tax exemption on housing loans from Rs 2 lakh to Rs 5 lakh, stating that this would significantly increase the demand for homes. He also recommended that the government provide incentives for green and environmentally friendly housing, given its focus on sustainable development.
Sahil Agarwal, CEO of Nimbas Group, highlighted the importance of the upcoming budget, which will be the first full-year budget of the Modi 3.0 government. He expressed optimism that key announcements would benefit the real estate and infrastructure sectors. He also suggested focusing on streamlining taxes and duties imposed on homebuyers, noting that property values in many states exceed 12%. In the previous budget, the finance minister had urged state governments to address this issue, but significant progress has yet to be made. Agarwal hoped that the upcoming budget would allocate funds to regulate these charges and provide relief to homebuyers. He also called for a review of the long-term capital gains tax on real estate.
Experts further stressed the importance of GST reforms to make real estate a more attractive investment option. They also urged the government to increase budget allocations for infrastructure development, including metro networks, multimodal corridors, and last-mile connectivity projects, to drive further growth in the sector.
