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Real Estate Sector Hopes for Industry Status in Upcoming Budget

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The real estate sector is eagerly anticipating the upcoming budget, hoping for long-awaited industry status recognition. As one of India’s largest employers, especially of unskilled and casual labor, this recognition could significantly benefit the construction sector. Industry status would streamline operations and attract more investment, boosting overall growth. The sector also looks forward to the implementation of a single-window clearance system to simplify approvals and reduce delays. Additionally, enhanced support for affordable housing initiatives is a key expectation, aiming to meet the housing needs of the growing population and stimulate economic development.

Manoj Gaur, Chairman, CREDAI National and CMD, Gaurs Group– “The real estate has pinned high hopes on the forthcoming budget. First of all, the sector is looking for the reintroduction of the interest subvention scheme to revive mass housing. Secondly, we are also seeking a redefinition of affordable housing. The present limit should be increased from 90 sqmtr and Rs 45 lakhs in terms of space and pricing, respectively. These will be a much-needed intervention as a considerable demand exists in the affordable housing segment. Lastly, we are also looking forward to announcements on GST input credit to stimulate growth and foster a more resilient real estate environment.”

Pradeep Aggarwal, Founder & Chairman – Signature Global (India) Ltd. & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development

“As we look forward to the upcoming budget, the real estate sector anticipates several key reforms to drive growth and efficiency. Granting Industry status to real estate will attract investments and streamline regulations. A simplified single-window clearance system will expedite project approvals, reduce delays, and enhance overall project execution. Revising the GST input tax credit rules will reduce property prices and increase transparency, while increasing the home loan interest rebate under Section 24 to ₹5 lakh will boost demand. Additionally, increased budget allocations for urban infrastructure and lower stamp duty rates for property transactions or waiver for first time home buyer from stamp duty will stimulate real estate growth. Expanding the definition of affordable housing to include homes up to ₹75 lakhs with a larger carpet area of 90 sq. meters, along with the relaunch of the CLSS scheme or similar scheme will further benefit homebuyers. The Indian economy has shown remarkable resilience and transformation over the past decade, with significant progress under the principle of ‘Sabka Saath, Sabka Vikaas.’ The government’s unwavering commitment to development is evident in continued investments in infrastructure, housing, and urban development. These initiatives and reforms are crucial for sustaining economic growth, creating jobs, and improving living standards, paving the way for India to become a developed nation by 2047.”

Deepak Kapoor, Director, Gulshan Group– “With NITI Aayog projecting the Indian real estate sector to reach a $1 trillion market size by 2030, the long-term outlook is promising. However, decisive government action is needed, and the sector is hopeful for favourable measures in the upcoming budget. Reducing input costs for steel, cement, and fuel is critical. The GST on cement, currently at 28%, should be lowered. Additionally, there is a need to promote affordable housing and introduce tax incentives to help achieve the nation’s housing objectives.”

Sandeep Chillar, Founder & Chairman of Landmark Group – “The real estate sector expects the government to look into its long pending demands of industry status and single window clearance. The sector is experiencing significant growth with increasing demand across various segments. To further boost the sentiment, the government must consider introducing policy reforms to attract and amplify foreign and domestic investments. This will greatly benefit the sector’s growth and contribute to the overall economic development of the country. Besides, revision of the taxation policy will also be one of the crucial factors that the government should consider in the upcoming budget as it will encourage millions of first-time homebuyers.”

Nayan Raheja from Raheja Developers – “The real estate sector expects the government to ensure by taking certain initiatives at the policy level in its forthcoming budget. Industry status and single-window clearance are long pending demands, and we hope for affirmative action on these. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector is hoping for. We are hopeful that the budgetary announcements will further boost the sector’s potential and enhance its share in the country’s economy.”

Ashwinder R. Singh, Co-Chair of CII’s NR Committee on Real Estate, CEO Residential at Bhartiya Urban, and Author – “The real estate sector has certain expectations for the 2024-2025 Union Budget. These include: increasing the home loan interest rebate to ₹5 lakh, reducing GST on construction, redefining affordable housing limits, granting industry status, incentivizing sustainable practices, and implementing a single-window clearance system.”

Rajjath Goel, Managing Director, MRG Group – “One of the primary expectations the real estate sector has from the upcoming budget is the granting of industry status. As one of India’s largest employers, particularly of unskilled and casual labour, the construction sector stands to gain a lot from this recognition. The sector looks forward to the implementation of a single-window clearance system and greater support for affordable housing initiatives.”

Dr. Amish Bhutani, MD, Group 108 – “Commercial real estate has significantly driven the country’s GDP growth. As the Union Budget 2024-25 approaches, we have high expectations from the government. We urge the government to grant the “Industry Status” to the sector , which would facilitate easier credit access and lower financing costs. With the increasing demand for retail and office spaces, we look forward to measures aimed at reducing input costs, particularly for steel, aluminium & Glass, as well as lowering the 28% GST on cement. Implementing tax incentives, and introducing a single-window clearance system are also key expectations from the upcoming budget.”

Sanjay Sharma, Director of SKA Group – “We anticipate the government will take steps to decrease the input costs for steel, cement, and fuel. The GST on cement, a major consumable, is currently at 28%, making up nearly one-third of the total cement cost, which is a significant concern. Regarding tax incentives, the sector is batting for sops to home buyers, friendly provisions under capital gains tax investors, and increasing tax concessions to home buyers, among other things.Furthermore, the outlook for the long term is promising. According to NITI Aayog’s forecast, the Indian real estate sector is expected to achieve a market size of $1 trillion by 2030 and contribute 13% to India’s GDP by 2025. While the residential sector has surpassed demand in the commercial sector, the latter is also seeing a rise in innovative projects gaining momentum.”

Ankit Kansal, MD, Axon Developers – “Real estate stands as one of the largest employers in the country. While the industry remains optimistic, we urge the government to address specific challenges. Granting industry status and implementing a single-window clearance system are longstanding requests that the sector hopes will be addressed. The diminishing availability of affordable housing, coupled with substantial demand, presents another pressing issue. In light of these challenges, the sector requires prompt government intervention. Additionally, we seek government incentives aimed at reducing prices for first-time home buyers to enhance housing affordability for the general populace.”

Sachin Gawri, Founder and CEO, Rise Infraventures – “The Indian real estate sector is experiencing rapid expansion fueled by increasing demand for residential properties. With the sector projected to contribute 13% to India’s GDP next year, there is strong anticipation for the upcoming budget to support its growth trajectory. High taxes on materials such as cement and steel have inflated housing project costs. The 28% GST on cement is a particular concern, and its rationalization is crucial to meet the surging demand. Additionally, the sector has longstanding requests for a single-window clearance system and industry status. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector hopes for.”

Kushagr Ansal, Director Ansal Housing – “With the real estate sector’s contribution to India’s GDP projected to reach 13% of India’s GDP next year, the sector hopes that the current budget will provide the thrust to propel its growth even further. Reduction in input cost is a major concern. The declining share of affordable housing and the huge demand for it is another challenging area. The segment needs an urgent intervention. Tax incentives along with favorable provisions under the capital gains tax for investors and concessions for first-time homebuyers are some other initiatives the sector would like the government to look into.”

Mukul Bansal, MD, Motiaz –“The Indian real estate sector is expanding swiftly and is driven by rising housing demands. As we approach the Union Budget 2024-25, a key expectation within the sector is granting industry status alongside implementing a streamlined single-window clearance system. Addressing these longstanding demands would inject fresh momentum into the sector.However, significant taxes on materials like cement and steel have inflated housing project expenses. Of particular concern is the 28% GST on cement, underscoring the urgent need for its rationalization to align with the rising demand.”

Ankush Kaul, Chief Business Officer, Ambience Group – “The Indian real estate sector contributes roughly 8% to GDP and is the second-highest employment generator in the country. Ahead of the Union Budget 2024-25, one of the sector’s primary expectations is granting industry status along with the single-window clearance system. Considering these long-pending demands would give a new push to the sector.”

Shorabh Upadhyay, MD, Trisol RED – “The real estate sector is an important growth engine for the Indian economy with one of its most urgent demands being the granting of industry status to the real estate sector. This status would enable developers to secure loans at lower interest rates and benefit from tax incentives and waivers, which is an important support in times of severe economic downturn. The sector has recovered strongly in recent years and continues to need government support to maintain this momentum.”

Salil Kumar, Director (Sales & Marketing), CRC Group – “The Indian real estate sector is experiencing rapid growth due to the increasing demand for housing spaces. With the sector’s contribution to India’s GDP projected to reach 13% next year, there is strong anticipation for the forthcoming budget to support its continued expansion. High taxes on input items such as cement and steel have driven up housing project costs. The 28% GST on cement is a particular concern, and rationalizing it is crucial to meet the growing demand. Additionally, the sector has long-pending demands for a single-window clearance system and industry status. We are hopeful that the government will address these needs in the upcoming budget.”

Ashwani Kumar, Pyramid Infratech – “Despite the positive sentiments surrounding the industry, challenges persist. The real estate sector is price-sensitive and taxes on input items such as cement and steel are still high raising the construction cost of the project. We request the government to look into it and also look forward to single-window clearance. Real estate is among the largest employers in the country and any step beneficial for the sector will have cascading effect on the overall economy.”

Ajendra Singh, Vice President Sales and Marketing, Spectrum Metro – “Ahead of the Union Budget 2024-25, commercial realty anticipates government policy measures to align with its entrepreneurship promotion goals. A key demand is the availability of GST input tax credits for commercial real estate. The 28% GST on cement, a primary consumable, accounts for nearly one-third of its total cost, making it a significant concern. Therefore, reducing the GST on steel, cement, and fuel, along with implementing a single-window clearance system, would provide a substantial boost to the sector.”

Tejpreet Singh, MD Gillco Group – “The Indian real estate sector is witnessing rapid growth due to rising demand for residential properties, playing a pivotal role in the country’s economic expansion. Accounting for 8% of the GDP, real estate stands as the second-largest job creator in the nation. Moreover, a critical need is to classify the real estate sector as an industry, facilitating developers to access loans at reduced interest rates and avail tax benefits and waivers. This support becomes crucial during economic downturns, ensuring stability and growth. With a strong recovery trajectory, sustained governmental backing remains essential to uphold this momentum.”

Neeraj Sharma, MD, Escon Infra Realtors – “NITI Aayog’s projection that the Indian real estate sector will reach a $1 trillion market size by 2030 highlights its promising long-term prospects. The sector eagerly anticipates government measures to reduce steel, cement, and fuel input costs. Addressing long-standing demands for industry status and a single-window clearance system would enable developers to secure loans at lower interest rates and benefit from tax incentives. These steps would significantly boost the sector and encourage further development.”

Prateek Tiwari, MD, Prateek Group says – “The real estate sector has not only emerged as one of the major employment providers and a significant partner in India’s economic growth but is projected to increase its share in the country’s GDP massively. Therefore, we hope the government will do its best to heed the real estate sector’s long-pending demands. This includes a single-window clearance system and industry status. Meeting these demands will have a significant impact on the sector further boosting the positive sentiments prevailing in the market.”

Mr. Prateek Mittal, ED Sushma Group- “We anticipate the forthcoming budget will provide significant income tax benefits for our sector. There is high hope for reinstating the CLSS scheme and reintroducing subsidies for homebuyers under PMAY. In addition, the industry eagerly awaits measures to reduce input costs for steel and fuel. The 28% GST on cement remains a significant concern, and rationalizing this tax is crucial to meet the increasing demand. Furthermore, we expect continued spending on infrastructure development, especially in tier 2 cities, to drive real estate growth in these regions.”

Harsh V Bansal, Co-founder Unity Group –“Commercial real estate requires policy support to align with the government’s goals of promoting entrepreneurship, especially given the ongoing retail boom, infrastructural development, and economic prosperity. One critical issue is the GST framework. When building a mall, we pay GST on construction. However, once the mall is operational and we start collecting rent, we should be able to offset the GST paid during construction with the GST collected on rent. Streamlining this process would greatly benefit the sector.”

Amit Modi, Director, County Group – “The real estate sector is one of the largest employers of both skilled and unskilled labour in the country. However, ahead of the forthcoming budget, there remain certain aspects that we request the government’s attention to. One of the most long-standing demands the sector emphasizes is the need to grant industry status to enable easier access to low-cost financing, which benefits consumers directly. Additionally, implementing Single Window Clearance is crucial for timely project completion and cost efficiency. Furthermore, reintroducing GST input credits for residential real estate will stabilize costs. We also expect to increase the home loan interest exemption to ₹8 lakhs annually to support first-time buyers, while Section 80C should exclusively cover housing loan principal deductions or raise its limit to ₹5 lakhs. We truly believe these growth inducers will accentuate the sector’s progress.”

Yash Miglani, MD, Migsun Group says- “The Indian real estate sector has been pivotal in driving the country’s economic growth. Contributing 8% to GDP, it is the second-highest employment generator in the country. As the Union Budget 2024-25 approaches, the sector’s primary expectations include being granted industry status and implementing a single-window clearance system. Additionally, the GST on cement, a key consumable, stands at 28%, making up nearly one-third of the total cement cost, a significant concern. Addressing these much-anticipated demands would provide a much-needed boost to the sector.”

Uddhav Poddar, MD, Bhumika Group says- “With the fast pace of urbanisation, the retail segment is expanding at an exceedingly rapid pace, hence there is a huge demand for Grade A retail spaces. This is true not just for Metro cities but even in tier 2 cities which are witnessing a total turnaround. The real estate sector, especially those working in commercial spaces, expects the government to ensure by taking certain initiatives at the policy level in its forthcoming budget. We are of the view that if GST input credit is available on commercial projects, it would immensely benefit this segment. The long-pending demand for conferring industry status on the sector should also be looked into. A single window clearance system should also be established. These are some of the few steps that would encourage real estate in the country.”

“The real estate sector witnessed a phenomenal year in 2024,” says Mr. Harinder Singh Hora, Founder Chairman of Reach Group.“Stable interest rates, ample supply, strong economic growth, and the government’s focus on infrastructure development all contributed to a significant boom. As we look towards the future, particularly with the retail sector poised for rapid expansion, ensuring commercial real estate policies that accelerates demand and growth which is further align with the government’s commendable goal of promoting entrepreneurship is crucial. While Budget 2025 might maintain existing tax and disinvestment projections, reducing GST on construction materials and implementing a single-window clearance system would be a significant step forward. These measures would incentivize investment, streamline processes for new businesses, and ultimately ensure commercial real estate remains a key driver of job creation, economic growth, and a flourishing entrepreneurial ecosystem.”

Harsh Gupta, CEO, Sundream Group says- “Commercial real estate stands as a pivotal driver of the country’s GDP growth, warranting high expectations from the government ahead of the Union Budget 2024-25. Granting industry status to the sector would streamline credit access and reduce financing costs, which is crucial for meeting rising demand in commercial realty. The sector eagerly awaits measures to lower steel and fuel input costs and address the 28% GST on cement. In addition, implementing a single-window clearance system is essential for sustaining momentum and fostering entrepreneurship in commercial realty,”

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