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Realty sector seeks industry status, tax sops in Budget

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NEW DELHI: The real estate sector has high expectations from the upcoming budget, with stakeholders seeking industry status, tax breaks, policy rationalization and incentivization. They also want projects approved under a single-window clearance.

Surinder Singh, director GLS group said the real estate sector, especially the residential segment, has bounced and is playing a significant role in bringing momentum to the economy. Keeping in view high inflation and significant rise in borrowing cost in the last few months, there is an urgent need of tax sops, especially for home buyers in affordable and mid-segment housing, to overcome the financial hardship. “Also the government should enhance the deduction limit against interest payment on home loans. For home buyers in the affordable housing segment, entire interest on home should be allowed as a deduction” he said.

Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers said “The Union Budget 2023-24 is highly anticipated by the real estate sector to keep up the momentum seen last year. While many expectations on the residential side can aid homebuying, we believe that some push on the commercial office side will go a long way in overhauling and improving the ease of doing business. For instance, clarity on the proposed DESH Bill will give impetus to businesses catering to domestic demand. To achieve India’s target of becoming a USD5 trillion economy by 2026, DESH hubs can play a huge role in strengthening the domestic manufacturing infrastructure. India’s domestic consumption is growing by the year, and a pro-investor policy for investment hubs can take India’s manufacturing abilities to the next level”

Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com said that the government should consider the industry’s long-standing demand for an increase in tax incentives for both principal and interest paid on home loans by borrowers and a single window clearance mechanism for projects.

The government should also rationalise GST rates for construction material like steel, cement and tiles. Additionally, it should also put aside more funds under the stress fund SWAMIH and policies should be widened so that the stuck projects can be completed, said Pradeep Aggarwal, founder & chairman, Signature Global (India), Ltd.

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