Budget expectations: Real estate sector

21 Jan 2022 , 05:29 PM

“We are hopeful that this year’s Union Budget 2022-23 will announce certain policy relaxations that can help further boost the real estate industry. For the year 2022, we expect the government to continue providing low bank interest rates on home loans to sustain a positive outlook of the real estate sector. Increasing home interest rate tax deduction from the current ceiling of Rs 2 lakh to Rs 5 lakh can provide the necessary impetus required in the industry.

We expect active participation from banks for project financing and hope for the government’s intervention to help avail the funding from banks and NBFCs. Furthermore, revised and lowered GST on raw materials such as cement and steel can be a crucial move as it will help stabilise the property prices.”

“Besides, we also hope that the affordable housing definition will be changed from 60 Sq Mtr to 90 Sq Mtr. for metro cities, and re-introduction of GST with input tax credit on under-construction properties can be addressed through the budget, as well.”

The author of this article is Mr. Shrikant Shitole, President – CREDAI MCHI-KDU & Managing Director – Tycoons Group.

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com