Following agriculture, the real estate sector stands as the second largest employer in India, contributing significantly to the nation's economy with approximately 9-10% of the total Gross Domestic Product (GDP). Acknowledging its vital role, both the Central and State Governments have been actively implementing measures to fortify this sector. Among the most pressing agendas is the mission to make affordable housing universally accessible, a priority echoed in the expectations for the upcoming Union budget.
The industry is appealing for a robust government package aimed at alleviating the severe demand shortage. Their proposal includes relief measures for homebuyers, particularly in the pricing domain, to stimulate the market.
Key Proposals include:
- Increase Tax Rebate Slabs: Enhancing tax benefits for homebuyers
- Boost Consumption: Encouraging home buying activities
- Social Infrastructure Development: To attract more buyers
- Employment and Job Creation: Enhancing buying capacity
- Realizing the 'Housing for All' Dream: Making affordable housing a reality
The Government's initial steps, notably the Pradhan Mantri Awas Yojana (PMAY), were directed at addressing the acute housing shortage, which has led to the proliferation of slums and shanties in urban and semi-urban areas. Presently, the Centre is considering proposals to reduce the costs of under-construction properties. This initiative aims to ensure developers pass on the benefits of input tax credits to homebuyers, a practice that has seen limited compliance despite governmental appeals.
The upcoming budget session is particularly significant, with the real estate sector keenly anticipating measures that will offer relief to potential homebuyers, especially in metropolitan cities like Mumbai.