Real Estate Views for Union Budget 2024
It is imperative that the real estate sector be given priority in the upcoming Budget for multiple compelling reasons. Above all, the real estate sector plays a pivotal role in driving India's economic expansion by generating large amounts of employment, GDP, and overall economic development. The government can stimulate economic activity and create jobs in this sector by making favorable policies and allocating resources.
As Union Budget 2024 draws near, the real estate sector in India is eagerly awaiting the apt measures that will shape the industry's future. Stakeholders are looking forward to revolutionary changes in a number of areas:
Permits of Industry Status
Given the real estate sector's critical role in India's economic development, stakeholders eagerly await the long-overdue award of industry status to this sector. This status is thought to be a driving force behind more funding and simplified regulations, creating a supportive atmosphere for the long-term, robust growth of the sector as a whole.
Currently, a real estate project needs more than thirty approvals from different state and federal government agencies. It is most important and significant to streamline bureaucratic procedures by implementing a single-window clearance system in order to accelerate project approvals, minimize delays, and improve overall project execution efficiency.
The GST Input Tax Credit Rules need to be updated
The lack of an input tax credit under these rates makes it more difficult for developers to offset taxes, which raises the overall cost of the project even with lower GST rates on residential and affordable housing. We hope that a single GST and a method for claiming input tax credit for all building supplies will lower real estate costs and increase process transparency. This action is thought to be a catalyst for expediting projects that were delayed because of cost overruns.
Revised Home Loan Interest Rate Rebate
By amending Income Tax Act Section 24's home loan interest rate rebate, the government should place more emphasis on boosting the housing market. The proposal seeks to draw in real estate investors and sharply increase demand by raising the price to a minimum of ₹5 lakh.
Improved Financing Environment
Developers are looking for a financing environment that is more favorable, with simplified procedures and more assistance from financial institutions. It is anticipated that policies supporting easier access to capital will foster long-term, sustainable sector growth.
Policy Interventions for Sustainable Development
Our goals are to encourage foreign direct investment, streamline regulatory procedures, and advance sustainable development through policy interventions. A well-designed budget should boost demand by providing incentives to developers as well as homebuyers, fostering a positive ecosystem for the real estate industry and real estate companies in India.
Easy Home Loan Policies
Experts discuss how the RBI's recent changes to repo rates over the past year have affected borrowers who now pay higher interest rates on their home loans. Reductions in the required down payment and relaxation of the requirements for home loans are intended to increase credit availability and stimulate the housing market.
Infrastructure Development as the Primary Focus in Urban Cities
This shift in emphasis is necessary to meet the demand for interconnected and sustainable urban areas for real estate properties. Increased funding for infrastructure projects is anticipated to spur the growth of urban real estate.
Fast track Inclusive Land Acquisition and Change of Land Use Process
Industry participants are upbeat about reforms that will expedite and make land acquisition and Change of Land Use (CLU) processes more inclusive. The goal of these reforms is to minimize uncertainty and shorten project timelines.
Encouraging the real estate industry is in line with the government's plan for urban growth. Sufficient financial resources and policy focus can encourage the development of urban infrastructure, guaranteeing interconnected, sustainable cities that improve people's quality of life in general. A forward-thinking national agenda must include the modernization and development of urban areas. To put it briefly, prioritizing the real estate market in the next budget is an investment in the long-term economic stability, job creation, and sustainable development of India. It addresses important issues and is in line with the country's goals for inclusive growth.
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