More tax benefits for homebuyers, changing definition of affordable housing among top real estate budget wish lists
Second job creator after agriculture, the real estate sector has seen a resurgence in demand in recent quarters despite the persistence of Covid-19. However, the industry wants government support to support the recovery. ET’s Kailash Babar explains what the industry expects from the 2022 budget.
Proponents expect tax relief and industrial status for the sector.
“Property buyers are impatiently awaiting an increase in tax relief. The demand for real estate investments from these millennials will only increase with the easing of taxes and reimbursements by the government in the Union Budget 2022,” Pankaj Bansal said. , director of M3M India.
Coming out strong after the two waves of the pandemic, the real estate sector is eagerly awaiting some important announcements.
“The sector expects the government to respond to its long-standing demand for industry status and one-stop clearance in the next budget. Bagging the status of the industry will allow the real estate sector to benefit from legitimate and easy financing from banks and financial institutions,” said Mohit Goel, MD, Omaxe Ltd.
One-stop customs clearance will help speed up the construction and delivery process, as delays in approvals continue to be a hurdle for developers.
“Another expectation is to extend tax relief to homebuyers by increasing the tax deduction limit for home loans from 2 lakh per year to 5 lakh per year. This would have an encouraging impact on homebuyers, especially first-time buyers across the country,” Goel added.
Huge investments and collaboration through public-private partnerships (PPP) in infrastructure and urban development will give impetus to the country to double its economic potential and respond to growing urbanization.
“We also expect the administration to respond to calls for a one-stop clearance system. The need for an online one-stop-shop is urgent, as it would speed up the multiple approval process. An online one-stop customs clearance solution is also urgently needed to increase the transparency of the system. We are confident that the government will shape its policy actions to further promote real estate demand this year,” said Santosh Agarwal, CFO and Chief Executive of Alpha Corp.
The commercial real estate segment has undergone a significant transformation over the past two years and continues to evolve due to uncertainties.
“As the government focusing on Atmanirbhar Bharat and making the country a $5 trillion economy by 2025, we expect it to improve the ease of doing business and bring reforms to further develop the manufacturing sector . And to achieve that, India would need high-quality office space and significant investment,” said Abhishek Pandey, Vice President, Customer Engagement and Distribution, Viridian RED.
The 2022 Union budget will play an enabling role in the real estate sector. The serviced office space sector has started to experience an upsurge in demand lately.
“India’s growing need to ease taxation would be helpful for the future development of the sector. In the new budget, we expect a reduction in TDS deduction rates on coworking spaces from the government,” said Vineet Taing, President of Vatika Business Centre.
The challenges of the pandemic are still present and to support growth, the government should bet on policies and measures that attract foreign investment and accelerate capital inflows.
“To encourage potential buyers who are ready to move forward with their buying decision this year, the government should provide relief on home loans and also focus on reviewing tax slabs and a clearance system at This will encourage buyers and sellers and boost the momentum for sustainable economic growth,” Shashank Vashishtha, Executive Director, eXp India.
“We are asking for the reintroduction of the input tax credit in the GST; thanks to the input tax credit, real estate prices will remain under control. Also, the integration of stamp duties and registration fees as part of the GST will be highly appreciated if the budget caters for it,” said Manoj Gaur, CMD, Gaurs Group and Vice President, North, CREDAI National .
The National Real Estate Development Council (NAREDCO) – an apex real estate body, formed under the Ministry of Housing and Urban Affairs, Government of India, has presented its recommendations for the upcoming Union Budget 2022-2023 of the government. The industry body, in its list of recommendations, urged the government to put in place provisions to promote home ownership and affordable and rental housing, as well as supporting development enterprises.
“The government has been supportive since the start of the pandemic. Although he has taken a pro-growth stance, there is a need to keep guard and continue supporting the sector. Amid the current lockdown and economic uncertainty, there is a need to create a sense of home ownership and create value in buying homes. It is indeed a valid proposition,” said Rajan Bandelkar, National Chairman, NAREDCO.
The need is to encourage people to buy houses, and one of the steps would be that the first-time home buyer should get the interest on the home loan deducted from their income or at least the interest subsidy should be increased to Rs 5 lakh from the current Rs 2. lakh.
Additionally, the PMAY and CLSS programs are expected to continue for another three years, with the last two years severely hampered by Covid.
“We expect the government to double the amount of fund allocation for Pradhan Mantri Awas Yojana to enable more people to realize the dream of owning a home and help the government achieve the housing target. for all by 2022,” said Pradeep Aggarwal, Founder and Founder. President of Signature Global Group and President of Assocham – National Council for Real Estate, Housing and Urban Development.
“Our expectations for the Union budget 2022-23 will be linked to the granting of infrastructure status to the real estate sector. This status will help the sector obtain multiple tax advantages to stimulate foreign and local investments,” said Navdeep Sardana, CMD Whiteland Corporation.
The budget should focus on the commercial segment, which has the potential to attract foreign investment and FDI.
“We have seen how supportive government policies such as stamp duty reductions, low interest rates on mortgages and infrastructure development have supported the sector. “Union is announcing customer-friendly measures such as tax breaks for homebuyers to encourage and empower them. We are also expecting a one-stop clearance mechanism to expedite approvals and avoid project delays,” said said Yashank Wason, managing director of Royal Green Realty.