As the government prepares to unveil the Union Budget for the fiscal year 2024-25, the real estate sector takes center stage in expectations, hoping for impactful policy measures to boost its growth and enhance transparency. Major players in the industry are advocating for targeted interventions to rejuvenate the sector, address housing shortages, and strengthen the positive trajectory initiated by recent reforms.
Mrinaal Mittal, Director, Unity Group
The sentiment prevalent in the real estate sector in 2024 is propitious after having witnessed an extraordinary growth spurt in 2023 notwithstanding various quandaries like lofty rates of interest. The demand drive and growth rate in residential real estate will be vastly shaped by the verdict of the next general elections.
Every year, before the budget announcement, the real estate industry expresses its expectations from the Finance Ministry. The agenda remains rather consistent with a few basic demands which also include fast-tracking the resolution of issues in the real estate sector. Additionally one of the key asks from this budget would be an increase in the tax rebate slab on home loan interest rates to at least twice what it is presently.
Affordable housing will need encouragement in the form of tax holidays to persuade developers to launch such housing projects as schemes introduced during and after the pandemic has expired. As a contributor of about 7.5% to the country’s GDP, our industry is justified in expecting a serious consideration to regulations that will augment the robustness of last year.
Hari Kishan Movva, Senior Vice President, SILA
To stimulate the housing market, it's crucial to increase the Income Tax Act Section 24's home loan interest rate rebate from INR 2 lakh to at least INR 5 lakh. This adjustment could particularly benefit budget homes, facing a 20% decline in sales in 2023 due to the pandemic.
Reviving expired incentives, like tax breaks, is imperative for affordable housing. Modify eligibility criteria, considering the Ministry's definition based on income, property size, and price. Adjust the qualifying cost for city properties; for instance, raise the budget to INR 85 lakh for Mumbai. This ensures broader accessibility and utilization of government subsidies and reduced GST rates.
Address the land shortage by releasing government-owned lands for affordable housing. Lands owned by entities like Indian Railways could significantly lower real estate prices when allocated specifically for this purpose.
Kaushal Mehta, Managing Director, Walplast
As we step into 2024, the construction materials industry anticipates a year of robust growth with strong tailwinds. The sector, pivotal for infrastructure development, envisions a positive trajectory, bolstered by technological advancements, sustainable practices and a renewed focus on efficiency.
As we eagerly await Budget 2024, our expectations center around supportive policies that foster innovation, development, sustainability and affordability. A far-sighted budget allocation in an election year can serve as a catalyst for the industry's growth engine, driving job creation and economic prosperity.
Embracing the challenges ahead, the construction materials sector is poised for a transformative year, contributing significantly to the nation's progress and reinforcing its role as a cornerstone of sustainable development.
Henna Misri, Chief Executive Officer, Space Creattors Heights
From formidable office settings in austere colors to lively, colorful and quirky offices, the co-working industry changed the way we work. From catering to mostly startups and freelancers to having mammoth corporate clients, flexi offices witnessed a metamorphosis that was further propelled by the pandemic.
Over the next three to five years, it is foreseen that the co-working sector, which presently makes up roughly 18% of all commercial real estate utilization in India, would achieve a proliferation rate of 25 to 30%. For an industry growing so rapidly, we are seeking some support and encouragement from the upcoming budget.
These essentially include positive tax reforms to support the expansion of our footprint along with lowering of GST rates and clearer standards on electricity tariffs. The creation of a single-window clearance system and a major impetus to infrastructure will also accelerate the entry and operation of coworking spaces in non-metropolitan areas which is the next step in the progression of the co-working and flexi office spaces.
Aryann Suri, Director Sales & Operations, Space Creattors Heights
According to a recent study, co-working spaces accounted for 27% of the net assimilation of 8.2 million square feet among the top seven to eight cities in Q1 2023. The flexi office industry is growing by leaps and bounds and is here to stay.
Owing to its flexible work tenets and equitable pricing alternatives, co-working spaces continue to be in high demand and the flexible co-working business is more vital now than ever before. Several corporates and large businesses have also switched to co-working spaces as they have accepted the hybrid work style to meet their organizational needs.
Despite a metamorphic rise our industry is a nascent one in all fairness and hence seeks some latitude from the Budget 2024. A lower goods and services tax (GST) for one will appreciably help the coworking industry augment their market presence by attracting smaller players and subsequently grow the revenue collection to the government.
Moreover, a reduction in the TDS which is at 10% currently will help the key stakeholders to offer assets at better prices to their clients.
Vipin Suree, Founder & Managing Director, Space Creattors Heights
For an industry that contributes 7 – 8 % to the country’s GDP and begets employment only second to agriculture, real estate is a relatively less appreciated and recognized industry. Our sector crested and corroborated a staggering growth rate in 2023 wherein the key property markets indexed an annual growth of 5%, in spite of contentions like record high interest rates and surge in listing prices.
We are bullish and expect to see the upswing in demand continue throughout 2024 but there is an expectation of some tangible support from the Finance Ministry. The government must provide momentum and succor to further stimulate buying thereby encouraging the buyers. Further, through the new budget, the government has to undertake cogent steps to not just boost demand but also address regulatory obstacles.
A single window clearance, tax reliefs and GST rationalization are some of the unequivocal measures that need to be initiated apart from granting real estate the industry status it has long deserved.
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