Quote on Budget Expectations for the Real Estate sector | Savills India
“The Indian economy has grown at a strong rate in recent years, fueled by consumer demand and government efforts to promote manufacturing and attract foreign investment, despite global uncertainty. However, there are potential challenges, mainly emanating from variety of external factors, which can slow the pace of economic activity and keep inflation stubbornly close to RBI’s outer limit of tolerance. Hence, there is a greater anticipation from the upcoming budget. While the industry will look for higher budgetary allocations, easier capital availability, and greater relaxations, the middle-class population, which has not had many direct sops in the recent past, will eagerly look forward to direct benefits like tax-cuts or higher deductions. Increased funding for social welfare programs, measures to control prices of essential goods and services, and initiatives to create job opportunities, etc., will all be expected from the upcoming budget.
The real estate sector is looking to the Union Budget with expectations of further support in the form of policies that will not only benefit the industry but also have a positive impact on the overall economy of the country. An area of high priority for the government is increasing tax benefits for home buyers. Raising the cap for deducting interest payments on home loans to Rs 5 lakh is a real need and should be a key consideration. Further, the higher allocation for the SWAMIH fund will be a great help for stalled projects. Several sectors like life sciences, data centres, EVs, warehousing, etc., are poised for high growth in India. Infrastructure status for real estate sector will act as a catalyst for these sectors too.” – Anurag Mathur, CEO, Savills India