New Delhi

India's new budget is poised to significantly impact the country’s real estate industry, particularly in the realm of affordable housing. 

Over recent years, affordable housing initiatives have catalysed progress by offering tax incentives to developers and homebuyers alike. 

But the general consensus is that more needs to be done. 

Indeed, despite these strides, challenges persist. 

These range from high land costs for acquisition to rising construction costs, as well as the need for sustainable development practices.

From a consumer perspective, the focus lies on measures that could potentially enhance affordability and accessibility to homes. 

Some of the major expectations include a reduction of the GST rate on basic construction materials like cement, which currently stands at 28 per cent.

Such a move could reduce overall home construction costs and subsequently lower property prices. 

Experts stress the importance of increasing the deduction limit for home loan interest payments beyond the current Rs 2 lakh per annum. 

This will offer significant relief to homebuyers burdened by high property prices and rents. 

In recent years, home loan interest rates have risen sharply to near double-digit rates. 

Reason: The Reserve Bank of India has kept its key interest rate at 6.5 per cent for over a year. 

So, the 2-lakh rupee limit is seen by experts as too low in today's scenario. 

While the government has no play in the interest rate setting part, its broader policies can offset some of the burden. 

By raising the interest repayment limit as a tax deduction, more disposable income will be added to people's purses. 

The post-pandemic resurgence in real estate has underscored the sector's digitisation and adaptability. 

Looking ahead, the budget is anticipated to introduce reforms aimed at sustaining this growth momentum. 

Initiatives such as incentivising first-time homebuyers, revisiting stamp duty rates, and reviving the credit-linked subsidy scheme under p-m-a-y could empower India's burgeoning middle class with greater homeownership opportunities. 

Proposals to grant infrastructure status to the real estate sector could facilitate easier access to financing. 

This can potentially translate to lower borrowing costs and increased affordability across the housing market. 

In essence, the budget's impact on the real estate industry hinges on its ability to address these critical consumer-centric issues, thereby potentially making homeownership more attainable for India's expanding middle class. 

The real question is - will the new coalition government pass through these reforms in the budget on July 23rd?