Real estate players budget estimates for 2024: Expecting a dramatic shift
By Bricksnwall | 2024-01-28
The Budget is expected to boost economic growth,
tackle obstacles, and create a robust and sustainable real estate landscape,
according to developers, investors, and purchasers.
Ahead of the 2024 budget announcement, the real
estate industry is looking forward to learning more about the government's
fiscal policies that will impact the sector in the upcoming year. The budget is
seen by developers, investors, and buyers as a means of promoting resilience
and sustainability in the real estate market, addressing obstacles, and
Subsidies for Affordable home: Real
estate players are hoping for significant government subsidies since home
affordability is a top concern. Data indicate that financial support for affordable
housing programs, lowered regulatory barriers, and tax advantages could have a
big impact. A dedicated budgetary allotment of, say, 5% for these kinds of
projects might significantly alleviate the housing shortages that the
middle-class and lower-class populations face.
Clarity on Regulatory Policies: Project
deadlines and costs are impacted by regulatory uncertainty that the real estate
sector struggles with. It is essential to have a coherent and uniform
regulatory structure. The industry would profit immensely from allocating
funds?possibly as much as 3% of the total budget?toward expediting approval
procedures, streamlining land acquisition guidelines, and guaranteeing
regulatory mechanisms' transparency. Infrastructure Development: The real estate
industry depends heavily on infrastructure development.
Improving connectivity, transit options, and
general urban infrastructure would require allocating a sizeable amount of the
budget?let's say 7?10%?which would not only make neighborhoods more livable but
also increase property prices. Growth would be encouraged in suburban and urban
Tax Reforms and Incentives: Tax
laws have a big impact on whether or not to invest in real estate. Stakeholders
are optimistic about measures that will balance the need for government revenue
with investment promotion. A specific distribution of funds, possibly between 4
and 6% of the total budget, might be used to lower capital gains taxes, provide
incentives for long-term property ownership, and implement initiatives to
increase foreign direct investment.
Green initiatives and sustainability: The
real estate industry is not an exception to the global focus that is
environmental sustainability. It is possible to support government efforts that
promote green and sustainable practices by designating approximately 2-3% of
the budget for them. The adoption of ecologically friendly methods would be
encouraged via tax breaks for green certifications, energy-efficient projects,
and incentives for eco-friendly development.
Support for Digital Transformation:
The real estate industry is changing as a result of digital transformation. To
further support this, budgetary allocations of approximately 1% to 2% should be
made for the development of digital infrastructure, smart city projects, and
regulations that make it easier for technology to be seamlessly incorporated
into real estate transactions. This would increase efficiency and transparency.
The real estate industry's diversified needs are
reflected in the varied yet interconnected expectations for the 2024 budget.
Strategic budgetary resource allocation in accordance with these expectations
could significantly contribute to the nation's overall economic development in
addition to stimulating the real estate industry.
The real estate industry and the economy as a whole
will need to convert expectations into measurable results, which will require
numbers and focused allocations.
Source : Business Today