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This year’s budget may introduce significant reforms affecting affordable housing, GST structure and infrastructure development within the real estate sector read more
 "What to expect for the real estate sector")
The real estate sector is expecting major reforms from the Union Budget. AP
As the Union Budget 2024-25 approaches, there is anticipation within the Indian real estate sector regarding potential policy changes. Under the Modi 3.0 administration, industry leaders and stakeholders are closely watching for reforms that may impact the sector.
Affordable housing
One key area of focus is affordable housing. The government might introduce tax incentives for both buyers and developers to address the needs of the lower-middle-class segment. Possible measures include tax breaks for homebuyers and tax holiday benefits for developers involved in affordable housing projects. Enhancements to the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) and potential new loan schemes could also influence housing demand among lower and middle-class segments.
GST reforms and real estate inclusion
The sector has been advocating for the rationalisation of the Goods and Services Tax (GST). A potential three-rate GST structure could simplify the tax regime. There is also discussion about bringing real estate transactions under GST to address the cascading effect of taxes and improve transparency.
Infrastructure policies and developer incentives
The budget may propose reforms to infrastructure policies, including tax incentives for developers. Such incentives could reduce development costs and promote large-scale projects, enhancing infrastructure and connectivity.
Industry status for housing
There is ongoing discussion about granting ‘industry status’ to the housing sector. This change could facilitate easier access to financing, lower borrowing costs, and potentially lead to regulatory reforms that streamline project approvals and reduce bureaucratic hurdles.
Regulatory and demand-boosting provisions
Addressing regulatory bottlenecks could be a focus in the upcoming budget. Measures to simplify approval processes, reduce compliance burdens and create transparent regulatory frameworks may help accelerate project timelines and improve market efficiency.
The upcoming budget could introduce measures that address challenges in the real estate sector and potentially influence its growth and development.
The author is Director of Manglam Group and Founder President of CREDAI Rajasthan Women’s Wing. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.
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