Realtors expect more tax relief and a larger PM Awas Yojana allocation from the interim budget.
By Bricksnwall | 2024-01-23
Additionally, the real estate industry anticipates
that the government would raise the limit on affordable housing units from Rs
45 lakh to a greater level, contingent on the size of the city.
Homebuyers and developers are expecting Finance
Minister Nirmala Sitharaman to unveil a number of initiatives to support the
real estate market in the Interim Budget 2024?25.
They hope to see changes to the definition of affordable
homes, an increase in the tax exemption on home loans, and a higher allocation
for the PM Awaz Yojana for both rural and urban areas. These changes would not
only support the growth of the real estate industry but also have a cascading
effect on other sectors.
The government is also anticipated by the real
estate industry to raise the cap on affordable housing units from Rs 45 lakh to
a greater level, contingent on the size of the city. Additionally, they want
the carpet area cap for these houses raised to higher limits, from the present
60 square meters in metro areas and 90 square meters in smaller regions.
In recent years, the affordable housing market has
seen two major challenges. Developers have been pulling out of the category
because to weaker profits, high input costs, and a spike in sales of premium
residences, even if sales have been negatively impacted by high loan interest
rates.
The category's percentage of total sales decreased
to over 20% in 2023 from over 30% in 2022 and almost 40% in the pre-pandemic
period. According to Anarock Property Consultants, its share decreased from
roughly 40% in 2019 to 18% in 2023 in the top 7 cities as well.
According to Sriram Mahadevan, managing director of
Joyville Shapoorji Housing, a division of Shapoorji Pallonji Real Estate, it is
crucial to give projects that target 50% of the units in the Mumbai
Metropolitan Area for less than Rs 45 lakh and Rs 75 lakh industrial status.
Furthermore, we implore the government to take into account the Rs 50,000-crore fund and incentives like the GST input tax credit and rental housing benefits that industry organization Naredco (National Real Estate Development Council) has proposed.
