• Sun. Feb 25th, 2024

    Real Estate Industry’s Demands for Budget 2024: A New Perspective

    ByJames Forsyth

    Feb 1, 2024
    Real Estate Industry’s Demands for Budget 2024: A New Perspective

    The upcoming Budget 2024 has sparked anticipation and hopes in the real estate sector as stakeholders eagerly await policy changes that could have a significant impact on the industry. While the sector has a long list of demands, it all boils down to one core fact: the need for growth and support.

    One major area of concern for the real estate sector is the definition of affordable housing. Industry players believe that expanding and standardizing this definition across government schemes and financial institutions would enable homebuyers to qualify for cheaper financing options. By removing the cap on the cost of the unit and instead focusing on the size of the unit, more people could fulfill their dream of owning a home.

    Furthermore, the sector seeks industry status, which would grant it easier access to institutional credit and lower borrowing costs for developers. By recognizing real estate as infrastructure, the government could unleash a new wave of investment and development in the sector.

    Tax sops and exemptions are also high on the wish list. Stakeholders are pushing for an increase in the tax exemption limit on the principal amounts and interest paid on home loans. This move would not only boost demand for residential properties but also provide much-needed relief to homebuyers burdened by high housing prices and interest rates.

    Another significant demand is to enhance eligibility criteria for the Pradhan Mantri Awas Yojana (PMAY) scheme. By expanding the subsidy and relaxing the interest subsidy range, the government could better support affordability for economically weaker sections. This would align with the government’s vision of providing housing for all and promote inclusive growth.

    Additionally, stakeholders are calling for greater retail engagement in Real Estate Investment Trusts (REITs). By aligning tax regulations with those of listed equity shares, the government can encourage more retail investors to participate in REITs, expanding the investor base and creating a more robust market for commercial real estate.

    In conclusion, the real estate sector’s wish list for Budget 2024 reflects the industry’s pressing need for growth and support. By addressing these demands, the government can unlock the sector’s full potential, fuel economic activity, and provide affordable housing options for all. The upcoming Budget presents a golden opportunity for the government to lay the foundations for a thriving real estate industry.

    An FAQ section based on the main topics and information presented in the article:

    1. What is the main concern of the real estate sector with regards to the upcoming Budget 2024?
    The real estate sector is concerned about the need for growth and support in the industry.

    2. What are the demands of the real estate sector?
    The main demands of the real estate sector include expanding and standardizing the definition of affordable housing, granting industry status, increasing tax sops and exemptions, enhancing eligibility criteria for housing schemes, and increasing retail engagement in Real Estate Investment Trusts (REITs).

    3. Why is expanding and standardizing the definition of affordable housing important?
    Expanding and standardizing the definition of affordable housing would enable homebuyers to qualify for cheaper financing options by focusing on the size of the unit rather than the cost. This would help more people fulfill their dream of owning a home.

    4. What would granting industry status to the real estate sector entail?
    Granting industry status to the real estate sector would provide easier access to institutional credit and lower borrowing costs for developers. It would also recognize real estate as infrastructure, leading to increased investment and development in the sector.

    5. Why are tax sops and exemptions important to the real estate sector?
    Tax sops and exemptions, such as an increase in the tax exemption limit on home loans, would boost demand for residential properties and provide relief to homebuyers burdened by high housing prices and interest rates.

    6. What is the demand regarding the Pradhan Mantri Awas Yojana (PMAY) scheme?
    Stakeholders are calling for an enhancement of the eligibility criteria for the PMAY scheme. This would involve expanding the subsidy and relaxing the interest subsidy range, better supporting affordability for economically weaker sections and promoting inclusive growth.

    7. How can the government encourage greater retail engagement in Real Estate Investment Trusts (REITs)?
    By aligning tax regulations with those of listed equity shares, the government can encourage more retail investors to participate in REITs. This would expand the investor base and create a more robust market for commercial real estate.

    Definitions for key terms or jargon used within the article:

    1. Affordable housing – Housing that is deemed affordable to low-income individuals or families based on factors such as income level, percentage of income spent on housing, and housing cost relative to income.

    2. Industry status – A designation given to a particular sector or industry by the government that provides certain benefits and privileges like easier access to credit, lower borrowing costs, and recognition as an essential sector.

    3. Tax sops and exemptions – Tax incentives and exemptions provided by the government to individuals or entities, such as a higher tax exemption limit on home loans, to encourage specific activities or sectors.

    4. Pradhan Mantri Awas Yojana (PMAY) – A government scheme launched in India to provide affordable housing to urban poor households. It offers various benefits and subsidies to eligible beneficiaries.

    5. Real Estate Investment Trusts (REITs) – Investment vehicles that allow individuals to invest in real estate assets without directly owning and managing properties. REITs pool funds from multiple investors and invest in income-generating properties, distributing the earnings to investors.

    Suggested related links:
    Ministry of Housing and Urban Affairs
    Reuters – Real Estate News
    National Real Estate Development Council