The central government has done a lot of work for the real estate sector with landmark initiatives in the years 2021-2022, one of which was affordable housing, also known as Pradhan Mantri Awas Yojana (PMAY). The sector has pinned its hopes on the upcoming Union Budget, expecting continued support through provisions that will benefit not only the real estate sector but the entire country’s economy.
Expectations from the Union Budget 2023-24:
● The industry requires a single window clearance to streamline and expedite the process as, the average number of permissions required by developers exceeds 50, and the process typically takes good time.
● To attract homebuyers from across the country, particularly first-time buyers, the government should raise the tax deduction limit for home loans from 2 lakh to 5 lakh per year, thereby providing tax relief to homebuyers.
● The real estate industry will be able to draw equity investment, restructure its debt, and get loans at cheaper interest rates with the support of a long-pending request for ‘Industry’ status.
● Prices have risen due to ongoing crises, so we expect announcements on specific schemes such as a reduction in GST on under-construction properties and pricing of key raw materials in the Union Budget 2023-24.
● The emphasis should be on increasing investments in green infrastructures such as renewables as well as traditional infrastructures such as roads, railways, and ports.