Real Estate Sector Pins Hopes on Modi 3.0 Regime Ahead of Union Budget 2024-25

With the Union Budget for 2024-25 set to be unveiled on July 23, the real estate sector is hopeful for tax reliefs and incentives. The future of the industry, a major employment provider, depends on infrastructure improvements and supportive measures for affordable housing to maintain current growth.

As the Union Budget for 2024-25 approaches, set to be tabled on July 23, the real estate sector is pinning its hopes on significant tax reliefs and other incentives under the Modi 3.0 regime. Given the industry's critical role as a primary employment provider, expectations are high for infrastructure improvements that will boost urban living standards.

Industry observers, including real estate consultancy firm Anarock, are questioning whether the government will finally confer industry status to the entire housing sector and introduce measures to revive the lagging affordable housing segment. Anarock noted that 2024 has so far witnessed robust growth in housing sales and new launches across seven key cities, with record-breaking sales of approximately 4.93 lakh units in 2023-24.

However, Anarock Chairman Anuj Puri emphasized the need for continuity in this growth, particularly addressing the housing needs of lower-income groups. Post-pandemic, affordable housing sales have plummeted, accounting for just 20% of Q1 2024 sales from over 26% in 2022. Puri called for high-impact measures like tax breaks and the revival of the Credit-linked Subsidy Scheme to stimulate this crucial market segment.

Among the proposed measures, Anarock suggested reintroducing a 100% tax holiday for affordable housing developers and revising the criteria to make more homes eligible for affordable housing benefits. The consultancy firm also stressed the importance of granting infrastructure status to the real estate sector, potentially easing access to funds and streamlining regulatory processes.

The upcoming Budget session, starting July 22, will see Finance Minister Nirmala Sitharaman present her sixth budget, a record surpassing the five budgets presented by former Prime Minister Morarji Desai. The sector eagerly awaits these announcements, hoping for a transformative impact on real estate dynamics moving forward.