As Finance Minister Nirmala Sitharaman prepares to unveil Budget 2024, the real estate sector has outlined several crucial expectations aimed at improving housing affordability and boosting supply. Industry experts are calling for a broader definition of affordable housing to encompass a larger segment of the population, alongside a significant increase in the tax deduction limit for home loan interest payments, from ₹2 lakh to ₹5 lakh per year.
The National Real Estate Development Council (NAREDCO) is also advocating for a higher tax exemption limit for interest on self-occupied properties to ₹5 lakh, hoping this move will invigorate housing demand amid rising property prices and mortgage rates.
Additionally, NAREDCO proposes allowing builders to choose between paying GST at a concessional rate without input tax credit or at a higher rate with ITC, which could enhance cash flow and reduce costs.
Real estate developers, including the Confederation of Real Estate Developers Associations of India (CREDAI), are urging for more tax incentives for affordable and mid-segment housing projects, addressing the recent decline in affordable housing sales and supply.
Anuj Puri of ANAROCK Group highlights the need for renewed, high-impact measures to revive the affordable housing segment, suggesting that new tax breaks for both developers and buyers are essential to stimulate growth and address current market challenges.