Union Budget 2024: Key Expectations of the Real Estate Sector, by the Real Estate Players, & For the Real Estate Customers

As we look forward to Union Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2024 on July 23rd, 2024, the excitement, expectation, and anticipation are rising higher than sky. The Budget-2024 is anticipated to chart a strategic plot for achieving the milestone of secured and sustained economic growth of the country. According to factual histories and incidents, the government is known for allotting a huge expenditure for key sectors to drive strong GDP growth. Hence this year, there is a huge hope falling on the budget from the end of the real estate sector that the government will implement strategic intervention to stimulate the market growth and solve the ongoing challenges.

So in this article, let’s witness the major expectations of the real estate sector on the Union Budget 2024 and key insights quoted by real estate experts.

Key Expectations

As the real estate sector is struggling to get an industry status in the budget for so long, the sector is severely expecting to attain a proper sector status and a considerable capital allotment in the budget to enhance the access to funds and draw domestic and foreign investments into the ground. Also they expect revised funding allocations for affordable housing terms and schemes such as SWAMIH scheme, PMAY and PMAY-based subsidy schemes such as CLSS and other new housing initiatives. They are expecting revised tax benefits for increasing standard deductions and limits for home loan interest deduction. Additionally, huge anticipation of measures and initiatives for digitizing land records and documents to improve and strengthen the transparency and simplify the process of real estate transactions. And also realtors are expecting single-window clearance for unlocking the financial advantages in real estate and simplify the approvals of housing projects.

Expressing the expectations of Real estate in the upcoming budget, Mayank Ruia, Founder & CEO of MAIA Estates says, “The government should reinstate the input tax credit on GST outflows towards the cost of developing real estate assets. This would significantly reduce cost and cash flow pressures on developers, thus helping rationalize price increases for buyers”.

Ramani Sastri, Chairman & MD, Sterling Developers Pvt. Ltd.: “There is a clear need for more tax benefits for both homebuyers and investors. The government should raise the deduction limit for interest payments on home loans from the existing Rs.2 lakh a year to Rs. 5 lakh. This will boost housing demand, reduce GST on under-construction properties, and adjust raw material pricing”.