Budget 2023-24: Affordable Housing for All

by Godrej Properties Limited

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The Union Budget 2023 will lay the roadmap for India’s growth momentum at a time when most of the world is looking at the recession and a steep drop in economic growth. The Nirmala Sitharaman Union Budget is also crucial because it is the current Central government’s last budget for the financial year ahead of the Lok Sabha elections in 2024.

From large enterprises to laymen, everyone looks forward to the Union Budget, hoping for relief and reforms that would benefit them.As the election year is fast approaching, the government seems keen to keep up the infrastructure push, which it followed as a policy decision. This is instrumental in assuring growth for the economy and by extension, the people of India.

While there has hardly been any tax relief for the middle class in the recent past, the Union Budget 2023 Income Tax reform seems to be promising for homebuyers.

India’s real estate sector is looking towards Finance Minister Nirmala Sitharaman’sUnion Budget 2023 announcements to bounce back from the pandemic and rising interest rates. Most property developers and realtors believe that only a good grasp from the government can revive this sector and put it on a strong footing.

This Financial Year’s Union Budget is expected to be a game changer and bring about a revolution in the Indian real estate industry. People are hoping that the government will disclose several initiatives to improve the investment atmosphere for developers and investors. The Nirmala Sitharaman Union Budget will see the government investing massively in urban infrastructure development, lowering the cost of building infrastructure through reforms like land acquisition, and most importantly, providing lakhs of low-income Indians with access to housing.

People are aware that the government has been striving to provide a conducive environment for investors to ensure steadfast economic growth. Since the pandemic, the economy has been growing at a slow pace, and experts forecast that it is expected to continue in the next fiscal year.

With theKendriya Budget just a few weeks away, the real estate sector is fastening its hopes on myriad economic reforms in the upcoming Union Budget 2023-24.

 

Here are a few key expectations of homebuyers from the Union Budget 2023-24:

Affordable Housing

Real estate and property developers are optimistic that the government would offer more incentives to boost affordable and rental housing. They are also hoping that the government would consider revising the price range for homes to qualify as affordable housing to provide the best possible opportunities for new homebuyers. For instance, homebuyers living in Bangalore can easily invest in luxury residential apartments like Godrej Splendourin Whitefield. This suburban area is fast-growing, well-connected, and a great place for IT professionals to live in.

Flexible and Friendly Home Loan Policies

Financial experts believe that reducing the burden of down payment and easing home loan eligibility criteria for homebuyers will make credit more accessible and drive the purchasing trend upwards. This will encourage buyers with lower savings to finalize their real estate deals and be proud homeowners in the future.

Tax Benefits for Homebuyers

New homebuyers are expecting the Union Budget 2023 Income Tax reform to include better rebates and lucrative schemes to invest in. They want the new reform to include a monumental increase in the income tax deduction on home loans under Section 24 (b) from the current amount of Rs. 2,00,000 to Rs. 5,00,000. They are also expecting that the tax deductions on repayment of the principal amount under Section 80C would be increased from the present limit of Rs. 1,50,000.

People are aware that to significantly boost the housing demand and supply, deduction on housing loan interest under Section 80C, rental income exemptions, and Section 24(b) of the Income Tax Act, 1961, must be incentivized.

Moreover, people are hoping that the Goods and Services Tax (GST), which is individually charged on different construction raw materials, will be billed as a single GST. Doing so, will help reduce property rates and ensure transparency in the selling and buying process.

Reduction of Registration Charges and Stamp Duty

Realtors, property developers and homebuyers are hoping for additional incentives like a reduction in stamp duty. Having a standard rebate across the country will be advantageous to developers and help homebuyers register their properties easily.

To conclude, as the Finance Minister prepares to present the Union Budget for the financial year 2023-24 on February 1, 2023, the real estate sector hopes for reforms and policies that are instrumental in driving realty growth and development.

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