2023: A Year of Remarkable Growth
The real estate sector experienced a significant surge in 2023, recording exceptional property sales across various housing segments. Optimism runs high as the industry anticipates maintaining this momentum into 2024 as well.
Expectations from the Finance Ministry
A key aspiration for the coming year is the Finance Minister's response to the industry's request to increase the tax slab to Rs. 5 lakh per annum for interest rate deduction under section 24(b) of the Act, up from the current Rs 2 lakh.
Addressing Metro City Property Rates
With property prices in metro cities skyrocketing, the industry advocates for a revision of the cap in the credit link subsidy scheme. Raising the limit from Rs. 45 lakh to Rs. 1 crore for metro city home buyers will significantly benefit the affordable housing segment, making homes more accessible.
Incentives for First-Time Homebuyers and GST Revisions
The industry urges the government to introduce tax benefits for first-time homebuyers and reconsider the implementation of GST with an input tax credit on under-construction properties. Such measures are expected to lower property rates and stimulate demand.
Expanding the SWAMIH Fund
An expansion of the SWAMIH Fund is proposed to ensure the timely completion of stressed projects. This will not only assist developers but also reinforce homebuyer confidence by delivering projects on schedule.
Outlook for 2024: A Robust Housing Demand
The real estate sector is gearing up for another year of robust housing demand. Developers are hopeful for increased government support, believing that a thriving housing sector will play a crucial role in the overall economic growth and infrastructure development.