India's new budget is poised to significantly impact the country’s real estate industry, particularly in the realm of affordable housing.&nbsp; 
&nbsp; 
Over recent years, affordable housing initiatives have catalysed progress by offering tax incentives to developers and homebuyers alike.&nbsp; 
&nbsp; 
But the general consensus is that more needs to be done.&nbsp; 
&nbsp; 
Indeed, despite these strides, challenges persist.&nbsp; 
&nbsp; 
These range from high land costs for acquisition to rising construction costs, as well as the need for sustainable development practices. 
&nbsp; 
From a consumer perspective, the focus lies on measures that could potentially enhance affordability and accessibility to homes.&nbsp; 
&nbsp; 
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. 
&nbsp; 
Such a move could reduce overall home construction costs and subsequently lower property prices.&nbsp; 
&nbsp; 
Experts stress the importance of increasing the deduction limit for home loan interest payments beyond the current Rs 2 lakh per annum.&nbsp; 
&nbsp; 
This will offer significant relief to homebuyers burdened by high property prices and rents.&nbsp; 
&nbsp; 
In recent years, home loan interest rates have risen sharply to near double-digit rates.&nbsp; 
&nbsp; 
Reason: The Reserve Bank of India has kept its key interest rate at 6.5 per cent for over a year.&nbsp; 
&nbsp; 
So, the 2-lakh rupee limit is seen by experts as too low in today's scenario.&nbsp; 
&nbsp; 
While the government has no play in the interest rate setting part, its broader policies can offset some of the burden.&nbsp; 
&nbsp; 
By raising the interest repayment limit as a tax deduction, more disposable income will be added to people's purses.&nbsp; 
&nbsp; 
The post-pandemic resurgence in real estate has underscored the sector's digitisation and adaptability.&nbsp; 
&nbsp; 
Looking ahead, the budget is anticipated to introduce reforms aimed at sustaining this growth momentum.&nbsp; 
&nbsp; 
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.&nbsp; 
&nbsp; 
Proposals to grant infrastructure status to the real estate sector could facilitate easier access to financing.&nbsp; 
&nbsp; 
This can potentially translate to lower borrowing costs and increased affordability across the housing market.&nbsp; 
&nbsp; 
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.&nbsp; 
&nbsp; 
The real question is - will the new coalition government pass through these reforms in the budget on July 23rd?&nbsp;

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.

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?

India Budget 2024-25: What is real estate sector's wishlist?

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades. <o:p></o:p>

According to the report titled 'Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,' the sector is expected to soar to a market size of $1.3 trillion by 2034 and a staggering $5.17 trillion by 2047. <o:p></o:p>

Currently valued at ₹24 lakh crore (approximately $300 billion), the Indian real estate market is predominantly split between residential and commercial segments, with residential comprising 80 per cent and commercial 20 per cent of the market share.<o:p></o:p>

The report underscores the pivotal role of the real estate sector in driving India's economic growth, with projections indicating its significant contribution to the country's GDP. <o:p></o:p>

By FY 2034, Indian real estate is anticipated to represent 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047. <o:p></o:p>

Additionally, CREDAI projects a substantial demand for housing, estimating a requirement for seven crore additional units by 2030. <o:p></o:p>

This surge in demand is indicative of the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand anticipated to stem from properties priced above Rs 45 lakh.<o:p></o:p>

Notably, the average home area is on an upward trajectory, experiencing an annual growth rate of 11 per cent. <o:p></o:p>

Leaders within CREDAI emphasise the pivotal role of real estate in India's journey towards economic development.<o:p></o:p>

Boman R Irani, President of CREDAI, highlights the sector's multiplier effect and its potential to significantly contribute to GDP growth. <o:p></o:p>

Irani emphasises, "Indian real estate today stands at an extremely important junction amidst India's journey to become a developed economy by 2047." <o:p></o:p>

Similarly, Manoj Gaur, Chairman of CREDAI, underscores the sector's pivotal role in fostering economic growth, correlating its performance with India's strong GDP numbers.<o:p></o:p>

Shekhar G Patel, President Elect of CREDAI, acknowledges India's economic resilience amidst global challenges, emphasising the country's significant GDP growth trajectory. <o:p></o:p>

Patel's remarks echo the sentiment of sectoral strength and resilience, positioning Indian real estate as a critical driver of economic progress. <o:p></o:p>

(With inputs from PTI)<o:p></o:p>

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades.

A report released by the Confederation of Real Estate Developers' Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades. According to the report titled 'Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,' the sector is expected to soar to a market size of $1.3 trillion by 2034 and a staggering $5.17 trillion by 2047. Currently valued at ₹24 lakh crore (approximately $300 billion), the Indian real estate market is predominantly split between residential and commercial segments, with residential comprising 80 per cent and commercial 20 per cent of the market share. The report underscores the pivotal role of the real estate sector in driving India's economic growth, with projections indicating its significant contribution to the country's GDP. By FY 2034, Indian real estate is anticipated to represent 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047. Additionally, CREDAI projects a substantial demand for housing, estimating a requirement for seven crore additional units by 2030. This surge in demand is indicative of the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand anticipated to stem from properties priced above Rs 45 lakh. Notably, the average home area is on an upward trajectory, experiencing an annual growth rate of 11 per cent. Leaders within CREDAI emphasise the pivotal role of real estate in India's journey towards economic development. Boman R Irani, President of CREDAI, highlights the sector's multiplier effect and its potential to significantly contribute to GDP growth. Irani emphasises, "Indian real estate today stands at an extremely important junction amidst India's journey to become a developed economy by 2047." Similarly, Manoj Gaur, Chairman of CREDAI, underscores the sector's pivotal role in fostering economic growth, correlating its performance with India's strong GDP numbers. Shekhar G Patel, President Elect of CREDAI, acknowledges India's economic resilience amidst global challenges, emphasising the country's significant GDP growth trajectory. Patel's remarks echo the sentiment of sectoral strength and resilience, positioning Indian real estate as a critical driver of economic progress. (With inputs from PTI)

Indian real estate sector poised to surge, projected to reach $1.3 tn by 2034

India's housing and real estate sector is one of the most affected sectors in the COVID-19 lockdown. January-June sales were at a decade low. Watch report.

India housing sales plunge: COVID-19 lockdown affected demand badly