Budget 2024-25: Real Estate and Housing Sector Awaits Key Policy Boosts

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    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:

    1. 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.
    2. 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.
    3. 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.
    4. MSME Status for Local Developers:
      • Propose granting MSME status to local developers for increased accountability, transparency, and better access to affordable credit.
    5. Separating Principal Repayment Component:
      • Support separating the principal repayment component from Section 80C to reduce effective interest on home loans.
    6. Regulation of Rental Housing:
      • Call for government intervention to regulate rental housing, including fixed rental yield provisions to control escalating rental rates.
    7. Extension of CLSS Scheme:
      • Emphasize extending the Credit Linked Subsidy Scheme (CLSS) to drive demand in the affordable housing segment.
    8. 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

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