Budget 2024 expectations Real Estate: Increase in home loan cap, interest subsidy and ITC

Budget 2024 Expectations: With Budget 2024 coming soon, the Indian real estate sector is full of expectations. It is important to note that the February budget will likely be an interim budget due to the upcoming elections. Although major policy changes may be limited, they could still set the tone for the full budget presented by the next government.

Also read: Expectations of Budget 2024: ‘Affordability’ top priority for real estate, know the major demands

Remember, these are just some expectations. The actual measures announced in the Budget may differ. Despite this, the real estate sector is hopeful of favorable policies that encourage growth and benefit both developers and home buyers.

Here are some key expectations:

Home loan range from Rs 2 lakh to Rs 5 lakh

Venkatesh Gopalakrishnan, Director Group Promoter Office, MD & CEO, Shapoorji Pallonji Real Estate (SPRE) said that as we approach 2024, the real estate sector is at a tipping point, expecting opportunities beyond traditional boundaries. Used to be. With signs of pre-pandemic stability, the industry is poised for continued growth.

“Recognizing the efforts of the government, we propose targeted measures in the upcoming Union Budget to unlock the full potential of the sector. We urge the government to consider our primary request, which is to increase the home loan limit from Rs 2 lakh to Rs 5 lakh per annum. Gopalakrishnan said, this will not only encourage home buyers but will also increase the revenue of the industry.

capital gains tax

Gopalakrishnan also advocated reduction in long-term capital gains tax, waiving notional rent on second properties and aligning the income tax rate with corporate rates at around 25 per cent.

“To revive this sector, the government should focus on affordable housing. We propose to reduce GST rates and interest subvention for affordable housing. Single window clearance for this sector is long pending. We are hopeful that it will be approved in this year’s budget,” Gopalakrishnan urged.

state of the industry

Gopalakrishnan also called for an industry-wide call to grant “industry status” to the residential sector, in line with the government’s vision of “housing for all”.

Section 80C limit

Gopalakrishnan also highlighted supportive measures, including NAREDCO’s appeal for funds worth Rs 50,000 crore, which will also align with the government’s vision of “housing for all” and significantly strengthen the momentum of the sector. Can do.

“There is an opportunity to redefine budget affordability as diverse locations demand different price ranges rather than uniformity. Recognizing the changing investment dynamics, we suggest expanding the Section 80C limit for Millennials and Gen-Z homebuyers,” Gopalakrishnan said.

GST, ITC and CLSS Scheme

Pradeep Agarwal, Founder and Chairman, Signature Global (India) also stressed on giving the real estate sector the long-pending industry status.

Aggarwal urged, “While urging expansion of infrastructure status for affordable housing, we advocate a solution where the sector gets input tax credit benefits and GST rates on construction materials are reduced to single digits “

Aggarwal also underlined the need for the government to set up a single window clearance system for quick execution of the project. Further, he said the government should restart the CLSS scheme, increase the affordable housing criteria to Rs 75 lakh and increase the carpet area to 90 square metres.

“These strategic measures are envisioned to strengthen the real estate sector and contribute significantly to the economic revival of the country.”

Budget 2024 Date: The Union Budget 2024, which will be an interim budget, will be presented on Thursday, February 1, 2024.