Real estate players budget estimates for 2024: Expecting a dramatic shift

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 spurring growth.

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 areas alike.

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