Indian Real estate is set to see robust growth in the coming decade. But to achieve this, there are many aspects which need support in terms of policy and implementation at ground level. For the ‘affordable’ segment, we expect more support to ensure the Hon’ble Prime Minister’s dream of ‘Housing for All’ becomes a reality.
In locations which support industry which is ‘carbon neutral’, we expect the Budget to provide incentives, so that ‘policy decisions’ get implemented at ground level - which would translate into Job creation, effectively giving a boost to the economy of such regions – Neral – Karjat being one such region.
At the National level, as per predictions of Niti Aayog, Indian Real Estate will touch the figure of 1 trillion US$ and will contribute 18-20 per cent of the Indian GDP by 2030. Secondly, India’s urban population is expected to touch 43.5 percent of total population by 2035.
When we put together both these factors, it creates a future scenario of very positive prospects for Real Estate in India. The key challenges facing Real estate are: availability of credit, complexities in land and approvals, availability of resources and skilled labour, high tax regime including local taxes and premiums.
Real estate is subject to taxations at all levels, many representations have been made to the government from time to time by the industry and we are positive that the authorities have understood the challenges and they are also on same page.
This budget we expect a lot of solutions for these issues that these will be addressed and the Real Estate sector will have smooth operations. The major tax announcements that we look forward to, include allowing Input tax credit to the Real Estate sector. Reduction of GST in key materials like Cement, blocks etc. Allowing higher deduction on housing loan interest to the end users. Removal of deemed taxation provisions for taxing unsold inventory and rentals in case of buyers.
RBI has been facing the challenge to control the growing inflation on an immediate basis. Taking a mid-term perspective, we are confident that the Hon. Finance Minister will take a balanced approach while tackling inflation, so as to not hamper the economy’s growth – which should be positive for real estate.
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