As Finance Minister Nirmala Sitharaman readies to unveil Budget 2024, the Indian real estate sector is poised for significant changes that could usher in a new era of affordability and accessibility. The industry eagerly anticipates key reforms, including the broadening of affordable housing definitions, the potential grant of industry status, and the introduction of favorable tax measures for both homebuyers and developers.
The Industry Wishlist: A Vision for Empowerment
Represented by the Confederation of Real Estate Developers' Associations of India (CREDAI), the real estate community has outlined a comprehensive wishlist. This includes the broadening of tax exemption limits on home loans to boost demand and making real estate investment more attractive through increased exemptions. Additionally, there is a call for potential elevation of the Special Window for Completion of Affordable and Mid-Income Housing Projects (SWAMIH) Fund. This wishlist reflects a collective effort to enhance the sector's appeal and make it accessible to a broader audience.
Redefining Affordable Housing Parameters
A significant focus is on redefining affordable housing to encompass a broader range of properties, enabling more homebuyers to benefit from cost-effective financing options. Proposed changes include revising the current definition to include larger properties without a price cap and reinstating tax holidays for developers of affordable housing to stimulate supply.
Support Measures for Homebuyers and Developers
The sector advocates for increased tax benefits for homebuyers, suggesting a substantial raise in the tax rebate on housing loan interest to bolster housing demand, especially within the affordable segment. For developers, there is a push to attain 'infrastructure status' to facilitate easier access to credit and reduce borrowing costs.
Enhancing PMAY and Boosting REITs
Suggestions include adjustments to the Pradhan Mantri Awas Yojana (PMAY) scheme's eligibility criteria to align better with market realities and support homebuyer affordability. Additionally, the sector aims to encourage retail participation in Real Estate Investment Trusts (REITs) through policy reforms and tax realignments, aiming to strengthen the growth of the real estate and infrastructure sectors.
Fostering Senior Living Development
Recognizing the potential in the senior care market, the real estate sector urges the government to implement senior care-specific initiatives. This involves calling for supportive policy frameworks and investment in geriatric healthcare infrastructure to ensure quality and access for India's aging population.
In Conclusion
As Budget 2024 approaches, the Indian real estate sector stands at a critical 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.