real estate sector The sector witnessed a sharp recovery in 2022 after a gap of two years due to coronavirus Epidemic. Investments in the Indian realty industry also reached $4.9 billion during the year, registering a growth of 20 percent year-on-year. Now, to further boost realty, industry players are expecting special announcements for the real estate sector in Budget 2023. They are expecting a separate tax cut for realty, redefining the definition of affordable homes and increasing the carpet area, among others.
Manoj Gaur, President, CREDAI NCR and CMD, Gaur Group, said, “Real estate contributes 6-8 per cent to the GDP and employs over 5 crore people. He has high hopes from the upcoming budget. Initially, there should be a separate deduction for repayment of principal, as is currently being added under section 80C. It should be increased from the existing limit of Rs 1,50,000.”
He said that there is also a need to redefine affordable housing from the existing limit of Rs 45 lakh in urban and Rs 30 lakh in non-urban, keeping in view the inflation factors. Also, the carpet area should be increased to 90 sqm in metros and 120 sqm in non-metro cities without any price cap.
“Long-term capital gains on capital assets should also be taxed at 10 per cent. The holding period should be reduced to 12 months in line with the holding period of other capital assets like listed equity shares and equity-oriented mutual funds. The sector would also like the Hon’ble Finance Minister to extend exemption under Section 80C for REIT investments starting from Rs 50,000. Gaur said, the holding period for units of REITs should be reduced to 12 months (as applicable for listed shares) from the existing 3 years to qualify as long-term capital assets.
Amit Jain, Director, Mahagun Group, said, “The realty sector has made a smooth transition from the turmoil induced by the pandemic. We believe that the sector should be further stabilized by taking serious measures in the Union Budget. GST, Circle Reduction in rates and stamp duty will be important new starting policies, which will give upside to the housing sector at the start of the year itself.”
Ashwini Kumar of Pyramid Infratech said that in order to keep up with the ever-increasing demand, the real estate sector would expect some incubation measures to be taken to increase the sales velocity and stamp out the problems currently plaguing the sector , which includes higher mortgage rates on home loans.
Kumar said, “In order to spur residential demand and encourage buyers to invest in homes, the deduction limit for principal repayment of housing loan is currently capped at Rs 1,50,000, which is the most frequent voice.” is one of the demands to be raised.”
Narayan Bhadana, Managing Director, 4S Developers, said, “There is a need to continuously work on road and infrastructure projects to emphasize the value of real estate offerings that are located in the vicinity. I am hopeful that the construction of such projects will Some action-oriented policies have been formulated in the budget to accelerate the pace of implementation and operationalization process.
Sterling Developers Chairman and MD Ramani Shastri said that the Indian real estate market has witnessed a strong comeback in 2022 and hence, the industry is looking forward to much-needed reforms and incentives in the upcoming budget to keep the momentum going. This year, the demands are beyond the normal expectation of Single-Window Clearance and the status of the industry.
“There is a clear need for more tax sops for homebuyers as well as investors. Currently, the tax cap on housing loan is Rs 2 lakh and has remained the same for the past few years. There has also been inflation during these years. Hence the government should increase the deduction limit for interest payment on home loans to Rs 5 lakh from the existing Rs 2 lakh per annum, which will spur demand for housing, especially in the affordable segment,” he said.
Ramesh Nair, CEO (India) and Managing Director, Market Development, Asia, Colliers said that the Union Budget 2023-24 is highly anticipated for the real estate sector to maintain the momentum seen last year.
“While many expect on the residential side to aid home buying, we believe that some push from the commercial office side will go a long way in overhauling and improving the ease of doing business. For example, clarity on the proposed DESH Bill will encourage businesses that meet domestic demand. DESH hubs can play a big role in strengthening the domestic manufacturing infrastructure to achieve India’s target of becoming a USD5 trillion economy by 2026. India’s domestic consumption is growing year on year, and an investor-pro-friendly policy for investment hubs can take India’s manufacturing capabilities to the next level,” said Nair.
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