Will the real estate wishlist for the Union Budget 2023 turn into a waitlist?

The Union Budget 2023 is just around the corner, and the Indian real estate sector, which is still recovering from the challenges faced during the pandemic, is eagerly waiting to find out what the government has in store for them. The sector anticipates measures that would further boost the sector’s growth and attract more investments. Well, let’s make it simple. This budget framework involves three key stakeholders: the consumers, the industry, and the government. However, with the ongoing economic uncertainty, it remains to be seen whether the government will be able to deliver on these wishes from consumers and the industry.

For the Janta

One of the key demands of the real estate sector is for the government to provide more tax incentives for home buyers. The government’s “masterstroke” of GST reductions last year was a positive step for the real estate sector, but more reform is needed. GST and stamp duty reforms will make it easier for developers to pass on benefits to consumers, which will help boost demand for housing.

The Pradhan Mantri Awas Yojana (PMAY) has been a step in the right direction, but more needs to be done to make housing affordable for a wider range of people. The industry is calling for an increase in the limit on affordable housing from Rs 45 lakhs to Rs 65 lakhs in big cities. This would provide a boost to the mid-segment housing market and make it more accessible for more people. Additionally, raising the tax deduction limit for home loans from Rs 2 lakhs to Rs 5 lakhs per year can be a good relief for consumers, which will again help boost housing demand.
And the list may go on, but all this would help make homes more affordable for the average Indian and would also provide a boost to the real estate market.

For the Industry

To stimulate growth in the real estate sector, the government is expected to increase public spending on infrastructure development. This includes spending on roadways, railways, water and sanitation, and other public amenities. By investing in infrastructure projects, the government can create an enabling environment that will encourage the development of new projects.The sector also expects the government to extend the period of tax exemption for developers under Section 80-IBA of the Income Tax Act. The current exemption period of one year is too short, and the sector believes that this should be extended to at least three years.

For the Government

Despite these demands, the real estate sector may be in for a waitlist because the government has other priorities and because of the economic uncertainty caused by the pandemic and geo-political disruptions. The government is most likely to focus on the sectors that have been hit the hardest, such as healthcare and small businesses. Additionally, the government’s focus may be on social welfare and rural development.

Conclusion

The real estate sector in India is facing a number of challenges, and the industry is hoping that the Union Budget 2023 will address some of these issues. While there may be a few items on the wishlist that will have to wait for future budgets, it is important that the government take steps to address some of these concerns. It is important to understand that the housing and real estate sectors play a critical role in the Indian economy, and the budget must be framed in a way that they can continue to grow. All in all, the budget is likely to bring in some much-needed relief for the real estate sector and help it reclaim its former glory.

The writer is the CEO and Founder of Homesfy.in and MyMagnet.io.

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