Budget 2023: Here’s what the real estate sector is expecting from FM Sitharaman
With a 50% spike in real estate sales in 2022, in comparison with the previous year, experts expect the good streak to continue in 2023.
The Indian real estate market saw a strong comeback post pandemic with the residential sector picking up demand amidst healthy economic growth, a Mint report states. The sector is looking forward to budget 2023 to play a key role in driving the demand for housing through tax relief and lesser stamp duty.
According to Gurmit Singh Arora, national president of Indian Plumbing Association, waivers should be implemented since it is difficult for builders to transfer GST to customers.
With a 50% spike in sales recorded in 2022, in comparison with the previous year, Nakul Mathur, MD at Avanta India, told Mint that the good streak is expected to continue in 2023, too, supported by a healthy economy, growing job market and an increase in per capita income. He suggested reduction of GST on raw materials like cement and steel, better credit for developers, and single window clearance to further boost demand.
Suren Goyal, partner at RPS Group, added that the government should either decrease lending rates or incentivize first-time home buyers with higher deductions in income tax returns.
Increase the limit of home loan interest deduction on income tax returns, reduce capital gain tax, introduce new lending avenues for developers, are some of the suggestions by Ankit Goel, director at Goel Ganga Developments, to encourage consumer spending.
To overcome the risks involved in an inflationary atmosphere, Hari Kishan Movva, senior vice president of SILA (real estate), wants input tax credit to be brought back, apart from lesser GST on raw materials.
There is also a demand for reduction of the long term capital gain tax rate and relaxation on the time limit on construction of a new property, Mrinaal Mittal, director, Blackteak Realty, said.
Increase deduction cap on principal amount of a home loan from ₹1.5 lakh to ₹4 lakh per annum, raise tax deduction limit on housing loan interest from ₹2 lakh to ₹5 lakh per annum, modify personal taxes, are some of the recommendations by Kamal Khetan, chairman & managing director, Sunteck Realty, to encourage stability and growth.
To boost redevelopment activities, the government should slash the double GST payment to navigate escalating costs and lesser margins after the pandemic slump, added Amit Jain, chairman of ARKADE Group.
More disbursements, ease of capital availability and better tax concessions on housing rental income are other expectations from the sector.