The growth of every industry in a nation is dependent on its Budget. So, it’s no wonder that every business and individual is eagerly waiting for 1 February, when Finance Minister Nirmala Sitharaman will present this year’s Budget. Just like every other industry in the country, the real estate sector has its own wishlist for the Union Budget 2023-24. The Indian real estate industry’s market size was valued at Rs $120 billion in 2017 and is expected to touch $1 trillion by 2030, according to Statista. The real estate sector is believed to be among the main drivers for India’s economic development in the upcoming years. The sector has shown stable growth in recent years. The demand for housing is strong as the Indian population is comparatively young and rapid strides are being made in urbanization. Here are some of the expectations that the real estate sector has from Union Budget 2023-24: Rationalization of capital gains tax The real estate sector expects rationalization of capital gains tax, as stated by Vestian CEO Shrinivas Rao, in a report by Financial Express. The industry wants the rate to be reduced from the existing 20 per cent and the removal of the Rs 2 crore cap on capital gains for reinvesting in two properties, according to him. Fewer hikes in the repo rates The Reserve Bank of India (RBI) has been hiking the repo rate since last year in its attempt to contain rising inflation. Cyrus Mody, Founder & Managing Partner at Viceroy Properties, said that it is expected that fewer hikes in repo rates will take place in 2023 in comparison to the last year. He believes that these policy announcements, along with factors like tax structure, are going to impact the Indian real estate market. Shrinivas Rao also echoed a similar point of view. He advised that a further increase in repo rate should be reconsidered to prevent the dampening sentiments of homebuyers. Providing liquidity to stuck real estate projects Real estate stakeholders wish that the Budget 2023 puts emphasis on both affordable and rental housing, as reported by Moneycontrol. They also want the strengthening of existing financing systems to offer liquidity to stuck real estate projects. Reduction in GST of input materials The cost of construction has become very significant in the past few years. With this, a reduction in Goods and Services Tax (GST) of input materials is widely expected by the industry stakeholders. Shrinivas stated that a decrease in GST of input material is going to greatly benefit the supply side. Increasing the tax rebate on housing loan interest rates Increasing the Rs 2 lakh tax rebate on housing loan interest rates to at least Rs 5 lakh is going to generate healthier housing demand, according to Shrinivas. He added that the demand will be generated mostly in the affordable and mid-income housing segment. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
The real estate sector is believed to be among the main drivers for India’s economic development in the upcoming years. The sector has shown stable growth in recent years
Advertisement
End of Article