Pre-budget expectations for the real estate sector by Mr. Rohan Khatau, Director, CCI Projects

As the Union Budget for 2024-25 approaches, it is imperative that the real estate sector’s needs and expectations are addressed comprehensively to ensure sustainable growth and development. One of the pivotal aspects that can stimulate demand in the real estate sector is the enhancement of the tax deduction limit on home loan interest. Increasing this limit from ?2 lakhs to ?5 lakhs under Section 24(b) would significantly alleviate the financial burden on homebuyers, encouraging more individuals to invest in housing.

Robust social infrastructure is the backbone of urban development. We hope the budget allocates substantial funds for the development of educational institutions, healthcare facilities, and recreational spaces. Investment in social infrastructure not only improves the quality of life for residents but also enhances the attractiveness of a region, thereby driving real estate demand.

To sustain the momentum in the real estate sector, it is crucial to attract both domestic and international investments. Simplifying the Foreign Direct Investment (FDI) norms and providing tax incentives to investors can make the sector more appealing.

Sustainable development should be at the core of our urban planning. We urge the government to introduce policies that promote green buildings and the use of renewable energy in construction. Offering tax rebates and incentives for developers who adopt sustainable practices would encourage the industry to align with global environmental standards, ensuring a greener future.

We hope to see substantial budget allocations for enhancing infrastructure which is paramount for the real estate sector's growth. Improved connectivity and infrastructure lead to the expansion of cities and open up new areas for development, providing more opportunities for both developers and homebuyers.

These measures are anticipated to create a more conducive environment for the real estate sector, promoting affordability, sustainability, and its overall growth.