As the Indian real estate market emerges from the shadow of a global epidemic, it has high expectations for Budget 2023. Despite the fact that demand for real estate in India has increased in recent months, the real estate and construction industries are hoping for some specific relief. Even though the Coronavirus pandemic reduced site visits and home demand across the country, the months that followed inspired confidence with a resurgence in housing demand.
The demand for residential housing in India's top eight cities increased by more than 15% year on year. Similarly, a significant rebound is expected in 2023. The real estate industry expects the government to take specific steps to smooth the road to recovery at a time when it is dealing with post-Corona issues such as rising input costs and razor-thin margins.
Speaking of the same, Gurmit Singh Arora, National President, Indian Plumbing Association said, "Stamp duty needs to be reduced. Following the implementation of GST, the industry was burdened, and it is extremely difficult for builders to pass it on to consumers. This can be accomplished by granting waivers rather than incentivizing it. In order to reduce the nation's carbon footprint, the government should incentivize green building. The government should also encourage and recruit more entrepreneurs."
There is an express need for more tax sops for home buyers as well as investors. In the opinion of Nakul Mathur, MD, Avanta India, "Indian real estate stands on a strong footing with a hike of 50% in sales transactions in 2022, compared to the previous calendar year. The positive sentiments will continue in 2023 backed by a healthy economic outlook, expansion in the job market, and a rise in per capita income. Meanwhile, it is also imperative for the governing agencies to take proactive steps to further build consumer demands alongside streamlining the supply cycle. Steps such as reducing GST rates on raw materials such as cement & steel, offering better credit for developers, and single window clearance can immensely help the overall sector."
Siddharth Maurya, Resource Specialist, Expertise Real-Estate and Fund Management comments, “The government must acknowledge the important role played by the sector and make deep policy reforms to accelerate growth in realty demand. Currently, concession can be availed in income tax on up to 2 lakhs paid as interest on home loans. This should be revised and increased to build healthy demand in the sector. Likewise, waivers or reductions should be offered on GSTs on raw materials such as cement, steel, etc. Raw material prices are increasing and reduction in GST rates can give a lot of relief to the developer fraternity. Giving infrastructure status to the sector is also long due as it can help in building liquidity in the sector.”
