Budget 2024: Real estate experts pitch for tax rebate increase and affordable housing measures

Dhruv Agarwala, Group CEO of Housing.com, Proptiger.com, and Makaan.com, underlines the importance of the upcoming budget in shaping a resilient future for the real estate industry.

Advocating a comprehensive approach that not only promotes affordable housing but also addresses fundamental challenges, Agarwala proposes a tax rebate increase to ₹4 lakh to sustain demand and stimulate the economy.

With several interest incentives expiring recently, experts stress the urgency to revive and extend benefits, like tax breaks, to encourage developers to construct more affordable housing.

Puri suggests modifying qualifying standards for affordable housing to expand eligibility for additional deductions, citing the need for adjustments in property cost criteria within city segments.

Moreover, they propose releasing sovereign land for affordable housing, pointing to lands owned by various government bodies that, if allocated specifically for affordable housing at lower costs, could significantly reduce overall real estate prices.

In the real estate market, 2023 saw record-high residential sales and a surge in demand and supply across top cities, including Mumbai, Pune, and Hyderabad, marking a 20% YoY increase in new launches.

Stable interest rates are expected to further encourage home purchases, setting a positive tone for growth in 2024.

Vikas Wadhawan, Group CFO of Housing.com, Makaan.com, and PropTiger.com, commends the industry's resilience amid challenges like rising interest rates and global uncertainties.

He notes the pent-up demand post-pandemic and the RBI's decision to pause rate hikes in 2023 as pivotal factors boosting buyer confidence.