The forthcoming Budget 2024 is expected to promote ‘Housing for All’, tax relief measures, and sustainability initiatives to help India’s real estate sector flourish.
The Indian real estate market is primed for a bright future, fuelled by urbanization, good governmental reforms, improving consumer sentiment, and a rise in disposable income.
In 2023, the real estate sector in India saw extraordinary expansion, breaking previous records and demonstrating great improvement.
Policy improvements, a positive consumer attitude, rising disposable incomes, and an increased desire for bigger houses have all contributed to this development.
As the nation’s urban population grows, so will the need for residential and commercial space.
The optimistic home-buying mentality that emerged in 2023 is projected to carry over into 2024.
With urbanization as the key engine, demand for real estate is expected to continue strong.
Property prices are likely to increase significantly, but at various rates across cities and regions.
Metropolitan locations are expected to have bigger price rises than smaller cities, reflecting the dynamic character of the real estate industry.
Budget Predictions for Real Estate
The previous Union Budget was promising in terms of increased emphasis on long-term investments, with a significant increase in capital expenditure and a dedicated focus on accelerating technological advancements across a variety of sectors, including 5G labs, agricultural tech, AI, infrastructure, and real estate.
In the next Budget 2024, we predict that the Prime Minister’s aim of ‘Housing for All’ would be prioritized in order to maintain supply-side stimulation and promote end-user demand.
The government is anticipated to implement a tax relief package to make houses more accessible, hence increasing demand.
We expect the government would enhance the maximum deduction limit for home loan interest rates from ₹2 lakh to ₹5 lakh.
A stable and predictable fiscal environment is critical at this time to build on existing consumer confidence in the real estate sector, so we anticipate that the Interim Budget for 2024 maintains the current tax regime to prevent short-term turbulence in the overall housing market.
Recognizing the significance of sustainability, the budget is expected to maintain its emphasis on energy transition in infrastructure development, urban planning, affordable housing, domestic manufacturing, and ease of doing business.
Allocating funds from the Urban Infrastructure Development Fund (UIDF) is essential for assisting governmental agencies in building urban infrastructure in tier 2 and tier 3 cities.
This innovative approach is intended to accelerate the development of real estate in these undeveloped markets.
As the real estate sector anticipates the Budget 2024, hopes are high for a sustained emphasis on ‘Housing for All,’ tax breaks, and environmental programs.
This industry is confident about its prospects for long-term growth, which has been strengthened by urbanization trends and constructive governmental reforms.
The forthcoming budget is expected to have a significant impact on the future of India’s real estate market.
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Source : Live Mint
