The Indian real estate market witnessed unprecedented growth in 2023, surpassing all expectations and setting new records. As the market gears up for 2024, all indicators point to a sustained and robust growth phase, bolstering the nations economy and investor confidence alike.
The upcoming Union Budget 2024 sets the expectations high for the real estate sector. The developer community expresses its wish list for the government to look into it.
“We are anticipating a growth-oriented budget where real estate thrives as a cornerstone of progress with policies that nurture sustainable development, incentivize innovation, and foster the housing segment with significant tax breaks. The Indian real estate industry rose massively in 2023 with a slew of projects be it residential or commercial. Maintaining similar optimism, we await the Union Budget with the provisions for the single window clearance system for greater transparency and efficiency. We would also like the administration to grant the most awaited Industry status to the real estate sector,” Santosh Agarwal, Executive Director and CFO, Alphacorp.
Despite global economic uncertainties, the sector has shown remarkable resilience and is expected to foster growth through favorable government policies.
S K Narvar, Group Chairman, Trident Realty is optimistic that the upcoming Union Budget will bring impactful measures to accelerate growth momentum.
He says, “The budget should include a fiscal stimulus and personal tax relief by increasing the tax rebate on home loan interest rates from Rs. 2 lakh to Rs. 5 lakh. This will be a significant boost for millions of first-time homebuyers. Another key area for the government to consider is to continue focusing on Tier 2 & Tier 3 cities and to provide more infra-development funds to ensure that a larger number of projects in these cities benefit. Furthermore, the government should consider revising the definition of affordable housing, both in terms of value and size, to cater to a large population that has returned to their hometown and to boost housing demand in new markets.”
The commercial realty segment comprising office space and retail space is a key driver in the sectors growth graph. Known for its resilience and adaptability, the real estate sector hopes for strategic policy interventions to ensure its continued growth and development.
“Global brands now occupy a quarter of the retail space in India, which rose to 1100 basis points from a year ago. We are positively poised in expectation towards the 2024 Union Budget and the optimism is also reflective from the latest reports by the CBRE South Asia, highlighting that the retail leasing surged upto 65 percent in January-June 2023. The momentum can be fueled further by stable regulatory reforms that streamline approvals and permitting processes, reducing delays in project execution,” Aman Sharma, Managing Director and Founder, Aarize Group.
The real estate sector is looking forward to the upcoming budget announcement, hoping that it will include measures that can support growth and propel growth in the nations economy. The government should take proactive steps to promote growth by simplifying clearances, providing fiscal incentives, granting industry status, and more.