One of the key highlights of Budget 2024 is the redefinition of affordable housing, reflecting a commitment to making homeownership accessible to a wider segment of the population. The government should expand the criteria for affordable housing, acknowledging the changing dynamics of the real estate market. The revised definition can encompass a broader spectrum of property sizes and locations, ensuring that more individuals and families can benefit from affordable housing initiatives.
“We highly expect that Budget 2024 will introduce innovative policies to expand the scope of affordable housing by increasing the eligibility criteria, making it inclusive of a larger demographic. The existing cap of Rs 45 lakhs proves inadequate, especially in major cities. There is a pressing need for the government to consider raising the cap to a more realistic range, preferably around Rs 60-65 lakhs. Financial incentives and subsidies are expected to extend to developers engaged in building affordable housing units, encouraging the private sector's active participation in addressing the housing needs of the economically weaker sections and the middle-income group”, asserts Ar. Vivek Bhole, Chairman & Managing Director of Vivek Bhole Architects Pvt. Ltd.
In a major move to stimulate real estate transactions and provide relief to investors, the Budget 2024 is anticipated to announce a substantial reduction in long-term capital gains tax. The revised tax structure should encourage property transactions, incentives for green buildings and focus on renewable energy. This reduced tax burden along with eco-conscious practices will attract more investors, leading to an increased and more dynamic property market.
“Currently, the LTCG tax on the sale of property stands at 20%, imposing a significant financial burden on sellers. The industry advocates for a reduction of tax to make real estate transactions more attractive and stimulate increased activity. Further, the budget is expected to consider tax deductions for developers certified by the Indian Green Building Council (IGBC), coupled with subsidies for the adoption of green building technologies. We also anticipate incentives for the installation of rooftop solar panels and credits for surplus renewable energy generation, aligning with an environmentally friendly ethos”, elucidates Ar. Sumit Dhawan, Founder and Principal Architect at Cityspace' 82 Architects.
