Budget 2024: Here's why private home developers have been left wanting for more
With lack of any big bang announcements and majority of their demands left untouched, private realtors from the residential real estate sector remain unhappy.
- Feb 1, 2024,
- Updated Feb 1, 2024 3:13 PM IST
The interim budget for FY2024-25 presented by the Finance Minister today in the new Parliament building has left many private home developers high and dry. With lack of any big bang announcements and majority of their demands left untouched, private realtors from the residential real estate sector remain unhappy.
According to Akash Pharande, Managing Director of Pharande Spaces, it is a lacklustre budget for the [private] housing sector. "Unfortunately, the interim budget 2024 didn't directly include any major positive changes for India's housing industry. While the expectations included industry status, tax benefits, affordable housing boosts, and easing liquidity issues for developers, none of these materialised in the interim budget,” he says.
Anuj Puri, Chairman, Anarock Group says, the interim budget 2024 made “no big-bang announcements”. According to him, not granting the industry status to the real estate sector, no tax benefits and special push for affordable housing segment - which has been under stress since the COVID-19 pandemic - are some of the unmet expectations for the realtors.
“The industry has been requesting industry status for years, believing it would unlock benefits like easier access to credit, tax breaks, and infrastructure development. This wasn't explicitly addressed in the interim budget. Tax incentives for homebuyers, such as increasing the deduction limit on home loan interest under Section 24, were expected. The interim budget remained silent on this as well,” he says, adding that “boosting allocations for schemes like PMAY (Urban) to improve affordability and encourage new projects in this segment was a key expectation. No major announcements appeared in the interim budget regarding this either”.
Puri, however, remains hopeful that while the interim budget didn't directly address the real estate sector's key demands, the upcoming union budget might hold more concrete measures addressing industry concerns and potentially impacting market trends.
Ahead of the interim budget, industry stakeholders - especially privy ate home developers - had put forward a list of demands. From the granting of industry status to the reintroduction of the interest subvention scheme, the realtors were expecting a slew of measures.
According to Manoj Gaur, Chairman & Managing Director, Gaurs Group and President of CREDAI NCR, first, the sector was looking for the reintroduction of the interest subvention scheme to revive mass housing. Second, they were also seeking a redefinition of affordable housing, and the limit for it to be raised from 90 sq mtr in terms of space and 45 lakh in case of pricing. Additionally, the realtors were looking for GST input credit to stimulate growth.
The interim budget for FY2024-25 presented by the Finance Minister today in the new Parliament building has left many private home developers high and dry. With lack of any big bang announcements and majority of their demands left untouched, private realtors from the residential real estate sector remain unhappy.
According to Akash Pharande, Managing Director of Pharande Spaces, it is a lacklustre budget for the [private] housing sector. "Unfortunately, the interim budget 2024 didn't directly include any major positive changes for India's housing industry. While the expectations included industry status, tax benefits, affordable housing boosts, and easing liquidity issues for developers, none of these materialised in the interim budget,” he says.
Anuj Puri, Chairman, Anarock Group says, the interim budget 2024 made “no big-bang announcements”. According to him, not granting the industry status to the real estate sector, no tax benefits and special push for affordable housing segment - which has been under stress since the COVID-19 pandemic - are some of the unmet expectations for the realtors.
“The industry has been requesting industry status for years, believing it would unlock benefits like easier access to credit, tax breaks, and infrastructure development. This wasn't explicitly addressed in the interim budget. Tax incentives for homebuyers, such as increasing the deduction limit on home loan interest under Section 24, were expected. The interim budget remained silent on this as well,” he says, adding that “boosting allocations for schemes like PMAY (Urban) to improve affordability and encourage new projects in this segment was a key expectation. No major announcements appeared in the interim budget regarding this either”.
Puri, however, remains hopeful that while the interim budget didn't directly address the real estate sector's key demands, the upcoming union budget might hold more concrete measures addressing industry concerns and potentially impacting market trends.
Ahead of the interim budget, industry stakeholders - especially privy ate home developers - had put forward a list of demands. From the granting of industry status to the reintroduction of the interest subvention scheme, the realtors were expecting a slew of measures.
According to Manoj Gaur, Chairman & Managing Director, Gaurs Group and President of CREDAI NCR, first, the sector was looking for the reintroduction of the interest subvention scheme to revive mass housing. Second, they were also seeking a redefinition of affordable housing, and the limit for it to be raised from 90 sq mtr in terms of space and 45 lakh in case of pricing. Additionally, the realtors were looking for GST input credit to stimulate growth.