PRE-BUDGET EXPECTATIONS FOR THE REAL ESTATE SECTOR
As the Union Budget 2024-25 looms on the horizon, the real estate industry remains hopeful for continued support. This support is not just seen as a boon for the sector but as a catalyst for the broader national economy. Mentioned below are a several key expectations from the upcoming budget that have been outlined:
- Tax Deduction Limit Increase: A major expectation is the increase in the tax deduction limit on home loan interest from the current Rs. 2 lacs to Rs. 5 lacs. This move is aimed at attracting a wider range of homebuyers, particularly those buying a home for the first time, by offering them significant tax relief.
- Affordable Housing Price Cap Adjustment: Another critical demand is to raise the price cap of affordable housing from the existing Rs. 45 lacs. This revision is especially relevant in metropolitan areas where constructing houses below the current cap is challenging due to the high costs of land and construction.
- Industry Status Recognition: The sector's long-standing request for recognition as an 'Industry' remains a focal point. This status could enable the sector to attract equity investments, restructure debts, and secure loans at more favorable interest rates.
- Investment in Green and Traditional Infrastructure: Lastly, there is a strong emphasis on increasing investments in both green infrastructure, like renewable energy, and traditional infrastructure, such as roads, railways, and ports. These investments are seen as crucial for the growth of both the real estate sector and the overall economy.
In summary, the real estate sector, bolstered by previous government initiatives, looks towards the Union Budget 2024-25 with optimism, hoping for measures that will sustain its growth and contribute positively to the nation's economic fabric.