Anticipations for Budget 2024 - Transformative Visions for Indian Real Estate

A New Chapter for Affordable Housing and Real Estate

As Finance Minister Nirmala Sitharaman prepares to present Budget 2024, the Indian real estate sector is poised with hope for transformative changes. The industry eagerly awaits the expansion of affordable housing definitions, granting of industry status, and the introduction of beneficial tax measures for both homebuyers and developers. Such pivotal changes are anticipated to propel the sector into a new era of growth and accessibility.

The Wishlist: Broadening Horizons and Empowering Buyers

The real estate community, represented by the Confederation of Real Estate Developers' Associations of India (CREDAI), has articulated a comprehensive wishlist. Key demands include the broadening of tax exemption limits on home loans to invigorate demand and making real estate investment more appealing through increased exemptions and the potential elevation of the Special Window for Completion of Affordable and Mid-Income Housing Projects (SWAMIH) Fund. This wishlist reflects a concerted effort to enhance the sector's appeal and accessibility to a wider audience.

Redefining Affordable Housing

A significant focus lies on redefining affordable housing to encompass a wider range of properties, thereby enabling more homebuyers to benefit from cheaper financing options. This includes revising the current definition to include larger properties without a price cap, and reinstating tax holidays for developers of affordable housing to stimulate supply.

In Support of Homebuyers and Developers

The sector advocates for increased tax benefits for homebuyers, proposing a substantial raise in the tax rebate on housing loan interest to support housing demand, especially within the affordable segment. For developers, there's a push towards gaining 'infrastructure status' to facilitate easier access to credit and reduce borrowing costs.

Enhancing PMAY and Promoting REITs

Adjustments to the Pradhan Mantri Awas Yojana (PMAY) scheme's eligibility criteria are suggested to better align with market realities and support homebuyer affordability. Additionally, the sector seeks to invigorate retail engagement in Real Estate Investment Trusts (REITs) through policy reforms and tax realignments, aiming to bolster the growth of real estate and infrastructure sectors.

Fostering Senior Living Development

With an eye on the burgeoning senior care market, the real estate sector urges the government to implement senior care-specific initiatives. Recognizing the potential for growth, there's a call for supportive policy frameworks and investment in geriatric healthcare infrastructure to ensure quality and access for India's aging population.

Conclusion

As Budget 2024 approaches, the Indian real estate sector stands at a pivotal juncture, hopeful for policy reforms that will unlock its full potential. From expanding affordable housing to enhancing buyer incentives and supporting senior living, the budget presents an opportunity to address key challenges and catalyze growth, ensuring a brighter future for real estate in India.