In the past, the Indian government has announced various measures to boost the real estate sector, including tax incentives and subsidies for homebuyers. In the Union Budget 2023-24, the government announced the extension of the tax holiday for affordable housing projects until March 2023. This was aimed at incentivizing developers to focus on affordable housing projects and make homes more accessible to low- and middle-income Indian Real Estate Homebuyers Real-estate.
In the upcoming budget, there could be more measures announced to support the real estate sector and provide relief to homebuyers. For example, the government could consider increasing the tax exemption limit on home loan interest, providing incentives for the purchase of electric vehicles, or introducing new schemes to promote affordable housing.
Here are some of the key expectations for the real estate sector from the budget for year 2023 :
Incentives for affordable housing: The government could announce measures to encourage the development of affordable housing projects and provide incentives for low- and middle-income homebuyers.
Reduction in stamp duty : The government could consider reducing stamp duty rates or providing exemptions for certain types of real estate transactions. This could make buying and selling properties more affordable and increase demand in the real estate sector.
Tax exemption on home loan interest : The government could consider increasing the tax exemption limit on home loan interest, which could reduce the burden of home loan repayments for homebuyers.
Implementation of Real Estate Regulatory Authority (RERA) reforms : The government could announce measures to strengthen the implementation of RERA reforms, which would increase transparency and accountability in the real estate sector.
Infrastructural development : The government could announce measures to improve infrastructural development, such as increasing funding for the development of roads, airports, and railways.
Incentives for sustainable development : The government could provide incentives for sustainable development practices, such as promoting the use of renewable energy sources and green building materials.
Here are some potential impacts on homebuyers from the budget of 2023
- Increase in affordability: If the government announces measures to promote affordable housing and reduce the cost of home buying, it could benefit homebuyers by making homes more accessible and affordable.
- Increase in demand : If the government announces measures to boost the real estate sector, such as reducing stamp duty rates or providing tax exemptions on home loan interest, it could increase demand for homes and lead to higher property prices in the short term.
- Increase in accessibility : If the government announces measures to improve infrastructural development, such as increasing funding for roads, airports, and railways, it could increase accessibility and connectivity, making properties located in such areas more attractive to buyers.
- Increase in sustainability : If the government provides incentives for sustainable development practices, it could encourage developers to adopt environmentally friendly practices in their projects, which would benefit homebuyers by reducing the environmental impact of the real estate sector.
Overall, the budget for the year 2023 is expected to provide a boost to the real estate sector and promote affordability, transparency, and sustainability. These measures could benefit both developers and homebuyers and help to revive the real estate sector, which has been impacted by the COVID-19 pandemic.