Union Budget 2024: What real estate sector stakeholders anticipate ahead of budget

Union Budget 2024: Ahead of Union Budget 2024 real estate stakeholders express their expectations, emphasizing towards sector's growth and stability. As the Union Finance Minister Nirmala Sitharaman, prepares to unveil the Interim Budget on February 1, the eyes of the real estate sector and the nation as a whole remain fixed on the crucial measures that will shape the industry's trajectory in the coming fiscal year. 

The realty state players underscored the longstanding demand for industry status in the real estate sector emphasizing that this move is critical for the industry's recognition and sustained growth. Nayan Raheja, of the Raheja Developers, also stressed the necessity for a single-window clearance system, considering it as a crucial time-saving measure for developers. 
 

Industry players urge government for tax incentives 

With high demand and limited new launches, the industry players urged for a push towards affordable housing while expressing expectations for the budget to potentially address interest rates, ensuring they remain conducive to the current market.

Yash Miglani, the Managing Director of Migsun Group, portrayed the real estate sector as a robust growth pillar of the Indian economy. He articulated the sector's collective plea for industry status, lower interest rates, and tax incentives to act as economic reliefs during crises and the need for reductions in input costs, particularly for steel, cement, and fuel. 

The real estate sector substantially contributes to the GDP, constituting 6 to 8 per cent and employing over lakhs of people directly and indirectly. Surender Kaushik, Managing Director of Aryan Realty Infratech Pvt Ltd, outlined key proposals, including a separate deduction for principal repayment, a redefined threshold for affordable housing, and increased carpet area limits. 
 

Union Budget 2024: What are the key expectations 

1) Reforms in long-term capital gains taxation.

2) Exemptions to Real Estate Investment Trust (REIT) investments.

3) Introduction of a single-window clearance system to streamline approval processes.

4) Tax incentives that would benefit home buyers and investors.

5) Lower interest rates.