The 2024 Budget announced by the finance minister Nirmala Sitharaman, contains some very innovative measures which would affect the real estate sector in the long run These programs have concentrated on affordable housing, infrastructure development, and urban development, in accordance with the backing needed by the real estate sector.
The initiatives of this budget showcase how serious the intent of the government has been towards the general expansion of the real estate sector, thereby contributing considerably to the economy of the country. Given here are some key measures that could revolutionize the real estate industry.
It should first lift the limitation on home loan interest deductions: This policy action will greatly promote homeownership, making housing more affordable to a larger group of people, thus enhancing the demand for associated industries. Other than that, increasing the rate of homeownership also contributes to general economic stability.
This can be simply done by extending the facility to contractors of paying GST at a reduced rate without input tax credit, which will uncomplicate the construction process and reduce project costs, thereby shortening project completion time and creating more jobs, ultimately leading to quicker housing supply.
The government can extend the Credit-Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana to further help the case of affordable housing. Bringing more homebuyers within its ambit of ‘affordable housing’ by redefining it can help more people be covered under additional deductions and incentives. This will not only increase the percentage of people having homes but also improve the quality of life for millions of Indians.
It is hoped that according to this report, awarding industry status to the real estate sector will make credit available at an affordable cost, thereby cutting project costs and attracting more investments. A booming real estate sector may have a multiplier effect on several allied industries and generate ample employment opportunities.
To utilize vacant land optimally, some encouragement must come from the government for the exploitation of vacant land available with public sector undertakings through public-private partnerships or by attracting private developers to undertake projects on such land. It will only add to increasing the housing supply and generating revenue for the government.
Ultimately, much more money has to be put into PMAY if it is to meet this huge housing-for-all undertaking. If the fiscal support is widened, the government will be able to widen the scope of the program and have better choices of affordable housing for lesser-privileged people.
Effectively, the formulation of such policies will better India’s real estate sector, making more people afford and have access to homes. If the government encourages growth in this area, it will be enriching millions of Indians’ lives, creating job opportunities, and usefully having a knock-on effect on the economy. A dynamic real estate market goes on to build a much more inclusive and powerful India—not just houses and bricks.
This is to note that some of the things that can be done are listed here. Ensuring that the real estate sector gets on a path for sustainable growth will require a well-thought, thorough plan that is based on various socio-economic factors.
