With the Union Budget 2024-25 set to be announced on July 23, the Indian real estate sector is anticipating significant reforms that could drive growth and efficiency in the industry. The sector is advocating for long-awaited recognition and policy changes to streamline operations, attract investment, and stimulate overall growth. This long-awaited recognition could significantly benefit the construction sector, one of India's largest employers of unskilled and casual labour. It would streamline operations, attract investment, and stimulate overall growth. Additionally, the sector is seeking a simplified approval process through a single-window clearance system and increased support for affordable housing initiatives to meet the needs of the growing population and spur economic development.

Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd. and Chairman of ASSOCHAM National Council on Real Estate, Housing, and Urban Development, highlights the benefits: "As we look forward to the upcoming budget, the real estate sector anticipates several key reforms to drive growth and efficiency. Granting Industry status to real estate will attract investments and streamline regulations. A simplified single-window clearance system will expedite project approvals, reduce delays, and enhance overall project execution. Revising the GST input tax credit rules will reduce property prices and increase transparency, while increasing the home loan interest rebate under Section 24 to INR 5 lakh will boost demand. Additionally, increased budget allocations for urban infrastructure and lower stamp duty rates for property transactions or waiver for first time home buyer from stamp duty will stimulate real estate growth. Expanding the definition of affordable housing to include homes up to INR 75 lakhs with a larger carpet area of 90 sq. meters, along with the relaunch of the CLSS scheme or similar scheme will further benefit homebuyers. The Indian economy has shown remarkable resilience and transformation over the past decade, with significant progress under the principle of 'Sabka Saath, Sabka Vikaas.' The government's unwavering commitment to development is evident in continued investments in infrastructure, housing, and urban development. These initiatives and reforms are crucial for sustaining economic growth, creating jobs, and improving living standards, paving the way for India to become a developed nation by 2047."

Manoj Gaur, Chairman of CREDAI National and CMD of Gaurs Group, states, "The real estate has pinned high hopes on the forthcoming budget. First of all, the sector is looking for the reintroduction of the interest subvention scheme to revive mass housing. Secondly, we are also seeking a redefinition of affordable housing. The present limit should be increased from 90 sq mtr and INR 45 lakhs in terms of space and pricing, respectively. These will be a much-needed intervention as a considerable demand exists in the affordable housing segment. Lastly, we are also looking forward to announcements on GST input credit to stimulate growth and foster a more resilient real estate environment."

Mohit Goel, Managing Director of Omaxe Group, emphasises, "The real estate sector is one of the strongest pillars of the Indian economy. As its contribution to India's GDP is slated to reach 13% next year, we anticipate the forthcoming budget will propel the sector's growth further. Moreover, giving the real estate sector industry status has been one of the most forwarding demands. This would allow developers to take loans at relatively low interest rates and avail of tax incentives. We urge the government to look into it and take beneficial steps to strengthen the sector further."

Amit Modi, Director of County Group, adds, "The real estate sector is one of the largest employers of both skilled and unskilled labour in the country. However, ahead of the forthcoming budget, there remain certain aspects that we request the government's attention to. One of the most long-standing demands the sector emphasises is the need to grant industry status to enable easier access to low-cost financing, which benefits consumers directly. Additionally, implementing Single Window Clearance is crucial for timely project completion and cost efficiency. Furthermore, reintroducing GST input credits for residential real estate will stabilise costs. We also expect to increase the home loan interest exemption to INR 8 lakhs annually to support first-time buyers, while Section 80C should exclusively cover housing loan principal deductions or raise its limit to INR 5 lakhs. We truly believe these growth inducers will accentuate the sector's progress."

Deepak Kapoor, Director of Gulshan Group, stresses the importance of cost reductions: "With NITI Aayog projecting the Indian real estate sector to reach a USD 1 trillion market size by 2030, the long-term outlook is promising. However, decisive government action is needed, and the sector is hopeful for favourable measures in the upcoming budget. Reducing input costs for steel, cement, and fuel is critical. The GST on cement, currently at 28%, should be lowered. Additionally, there is a need to promote affordable housing and introduce tax incentives to help achieve the nation's housing objectives."

Ankush Kaul, Chief Business Officer of Ambience Group, states, "The Indian real estate sector contributes roughly 8% to GDP and is the second-highest employment generator in the country. Ahead of the Union Budget 2024-25, one of the sector's primary expectations is granting industry status along with the single-window clearance system. Considering these long-pending demands would give a new push to the sector."

Sandeep Chillar, Founder & Chairman of Landmark Group, comments, "The real estate sector expects the government to look into its long pending demands of industry status and single window clearance. The sector is experiencing significant growth with increasing demand across various segments. To further boost the sentiment, the government must consider introducing policy reforms to attract and amplify foreign and domestic investments. This will greatly benefit the sector's growth and contribute to the overall economic development of the country. Besides, revision of the taxation policy will also be one of the crucial factors that the government should consider in the upcoming budget as it will encourage millions of first-time homebuyers."

Nayan Raheja from Raheja Developers adds, "The real estate sector expects the government to ensure by taking certain initiatives at the policy level in its forthcoming budget. Industry status and single-window clearance are long pending demands, and we hope for affirmative action on these. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector is hoping for. We are hopeful that the budgetary announcements will further boost the sector's potential and enhance its share in the country's economy."

Rajjath Goel, Managing Director of MRG Group, explains, "One of the primary expectations the real estate sector has from the upcoming budget is the granting of industry status. As one of India's largest employers, particularly of unskilled and casual labour, the construction sector stands to gain a lot from this recognition. The sector looks forward to the implementation of a single-window clearance system and greater support for affordable housing initiatives."

Dr. Amish Bhutani, MD of Group 108, highlights, "Commercial real estate has significantly driven the country's GDP growth. As the Union Budget 2024-25 approaches, we have high expectations from the government. We urge the government to grant the 'Industry Status' to the sector, which would facilitate easier credit access and lower financing costs. With the increasing demand for retail and office spaces, we look forward to measures aimed at reducing input costs, particularly for steel, aluminium & Glass, as well as lowering the 28% GST on cement. Implementing tax incentives, and introducing a single-window clearance system are also key expectations from the upcoming budget."

Sanjay Sharma, Director of SKA Group, comments, "We anticipate the government will take steps to decrease the input costs for steel, cement, and fuel. The GST on cement, a major consumable, is currently at 28%, making up nearly one-third of the total cement cost, which is a significant concern. Regarding tax incentives, the sector is batting for sops to home buyers, friendly provisions under capital gains tax investors, and increasing tax concessions to home buyers, among other things. Furthermore, the outlook for the long term is promising. According to NITI Aayog's forecast, the Indian real estate sector is expected to achieve a market size of USD 1 trillion by 2030 and contribute 13% to India's GDP by 2025. While the residential sector has surpassed demand in the commercial sector, the latter is also seeing a rise in innovative projects gaining momentum."

Ankit Kansal, MD of Axon Developers, states, "Real estate stands as one of the largest employers in the country. While the industry remains optimistic, we urge the government to address specific challenges. Granting industry status and implementing a single-window clearance system are longstanding requests that the sector hopes will be addressed. The diminishing availability of affordable housing, coupled with substantial demand, presents another pressing issue. In light of these challenges, the sector requires prompt government intervention. Additionally, we seek government incentives aimed at reducing prices for first-time home buyers to enhance housing affordability for the general populace."

Sachin Gawri, Founder and CEO of Rise Infraventures, explains, "The Indian real estate sector is experiencing rapid expansion fueled by increasing demand for residential properties. With the sector projected to contribute 13% to India's GDP next year, there is strong anticipation for the upcoming budget to support its growth trajectory. High taxes on materials such as cement and steel have inflated housing project costs. The 28% GST on cement is a particular concern, and its rationalisation is crucial to meet the surging demand. Additionally, the sector has long standing requests for a single-window clearance system and industry status. Raising the deduction limit under section 80C for principal repayment of housing loans from the present 150,000 is among other initiatives the sector hopes for."

Kushagr Ansal, Director of Ansal Housing, remarks, "With the real estate sector's contribution to India's GDP projected to reach 13% by next year, we eagerly anticipate the Union Budget 2024-25 to support its growth further. Key expectations include industry status, a single-window clearance system, and measures to address rising costs of materials like cement and steel. The 28% GST on cement is notably high and should be lowered to boost housing affordability. We also urge the government to consider raising the deduction limit under section 80C for principal repayment of housing loans to stimulate demand. The long-term outlook is promising, with NITI Aayog projecting the sector to reach a market size of USD 1 trillion by 2030."

In conclusion, the real estate sector is looking forward to the Union Budget 2024-25 with high expectations for reforms that will drive growth, enhance efficiency, and make housing more affordable for the Indian population. The industry's collective voice highlights the need for government intervention to support its continued expansion and contribution to the economy. The real estate industry looks forward to the forthcoming budget with high expectations for supportive measures and reforms.