As the interim Union budget for 2024-25 looms, stakeholders in the real estate and housing sector anticipate pivotal policy measures to ignite growth. Despite a robust performance in 2023, challenges such as high interest rates and reduced affordability persist, prompting the need for targeted interventions.
Expectations from Different Sectors:
- Coworking Sector Advocates Reforms:
- Lower GST for small-scale coworking clients to spur industry growth.
- Raise the salary cap under Section 80JJAA benefits from Rs 25,000 to Rs 40,000.
- Extend the timeline for startups/coworking entities to enjoy Section 80JJAA benefits to five years.
- Seek stamp duty concessions and TDS rate adjustments for registration and improved working capital.
- Senior Living Segment Seeks GST Exemption:
- Urge GST exemption for maintenance/services and senior-specific restaurant services.
- Propose input credit refunds on senior citizens’ expenses to incentivize affordable service offerings.
- Standard Deduction Limit Increase:
- Advocate for increasing the standard deduction limit to provide more income to homebuyers.
- Align adjustments with or exceed inflation rates for enhanced affordability in the real estate market.
- MSME Status for Local Developers:
- Propose granting MSME status to local developers for increased accountability, transparency, and better access to affordable credit.
- Separating Principal Repayment Component:
- Support separating the principal repayment component from Section 80C to reduce effective interest on home loans.
- Regulation of Rental Housing:
- Call for government intervention to regulate rental housing, including fixed rental yield provisions to control escalating rental rates.
- Extension of CLSS Scheme:
- Emphasize extending the Credit Linked Subsidy Scheme (CLSS) to drive demand in the affordable housing segment.
- Maximum Deduction for Home Loans:
- Stress the need to increase the rebate on home loan interest under Section 24 from Rs 2 lakh to at least Rs 5 lakh for market stimulation, particularly in the budget homes segment.
(Source: Moneycontrol – By Various Experts in the Real Estate Sector)
Also read: Real Estate Wishlist for India’s 2024 Union Budget