Homebuyers and developers across Maharashtra are eagerly awaiting the Union Budget 2024-25, hoping for measures that will drive growth, stability, and make housing more affordable. Industry leaders have shared their key expectations, highlighting the need for tax relief, streamlined processes, increased support for affordable housing, and measures to address liquidity challenges.

Tax Relief and Incentives:

Mr. Prashant Sharma, President, NAREDCO Maharashtra: Mr. Sharma emphasises the need for enhanced tax incentives for homebuyers, advocating for increased limits on deductions under Section 80C and Section 24(b) to boost housing demand. He also calls for a single window clearance system to streamline project approvals and incentives for affordable housing, including extending benefits under the PMAY and redefining affordable housing to include properties up to INR 1 crore in metro cities. Addressing liquidity issues by ensuring easier access to financing and expanding the SWAMIH stress fund to INR 1 lakh crore is also crucial. Simplifying land acquisition and promoting rental housing policies are essential for urban development. Mr. Sharma believes these measures will revitalise the sector and contribute significantly to economic growth.

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI: Mr. Chivukula highlights the importance of increasing tax deductions on home loan interest to INR 5 lakh to stimulate residential demand. He advocates for a single-window clearance system to expedite approvals and incentives for affordable housing, such as extended tax holidays and increased PMAY allocations. Rationalising GST rates and granting infrastructure status to the real estate sector will facilitate easier access to funding. He emphasises the need for sustainable development policies and incentives for rental housing to meet urban housing needs. Special provisions for reviving stalled projects are also essential for market stability.

Mr. Vedanshu Kedia, Director, Prescon Group: Mr. Kedia calls for a rethinking of the GST structure, advocating for input tax credit and rationalisation of GST rates to make real estate more affordable. He urges revisions in capital gains taxation, reducing the holding period for long-term gains and increasing exemptions under Sections 54 and 54EC. Enhanced infrastructure development and incentives for NRIs to invest in Indian real estate with a minimum investment amount of INR 25 lakh are also critical. Supporting millennial homebuyers with incentives and focusing on senior living solutions are necessary to address demographic trends. Overall, he seeks policies that enhance transparency, reduce regulatory bottlenecks, and promote sustainable development.

Mr. Samyak Jain, Director, Siddha Group: Mr. Jain emphasises the need for tax benefits, easier access to credit, and improved liquidity to sustain the sector's growth. He advocates for targeted schemes for millennials and first-time homebuyers to boost demand. Increased budgetary allocation for infrastructure development in cities like Mumbai is essential to unlock new development regions. These measures will foster a conducive environment for real estate growth, contributing to overall economic development.

Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers: Ms. Kedia-Agarwal anticipates policies that stimulate the housing market, such as tax benefits for homebuyers and reduced GST rates. Simplifying FDI processes and making them more attractive to foreign investors is crucial for bringing capital into the sector. She calls for policies that make it easier for NRIs to invest in Indian real estate, alongside substantial budget allocations for infrastructure development. These steps will benefit ancillary industries and create numerous job opportunities, supporting overall economic growth.

Mr. Rohan Khatau, Director, CCI Projects: Mr. Khatau stresses the importance of enhancing the tax deduction limit on home loan interest and investing in social infrastructure to drive real estate demand. Simplifying FDI norms and promoting sustainable development practices are also key. He advocates for substantial budget allocations for infrastructure improvements, which will open new areas for development and provide more opportunities for both developers and homebuyers.

Mr. Himanshu Jain, VP - Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL): Mr. Jain highlights the need for continued support for affordable housing initiatives, especially in metro cities. Enhancing tax benefits for homebuyers and increasing budget allocations for infrastructure development are crucial for the sector's growth. He also calls for reforms and incentives to boost commercial real estate and promote REITs, which will bring in much-needed capital and provide investment opportunities.

In summary, the real estate sector in Maharashtra looks forward to a budget that addresses these critical areas, fostering growth, stability, and affordability. By implementing these measures, the budget can empower homebuyers, boost investment, and create a more stable and sustainable real estate market. This, in turn, will contribute to the country's overall economic growth and development.