Lokmat News Network
Chhatrapati Sambhajinagar
One of the long-standing demands of the real estate sector is to grant 'industry status' to it, and CREDAI Maharashtra hopes that the upcoming union Budget, to be presented on February 1, will bring a positive decision on this matter.
The real estate sector plays a significant role in India's GDP, contributing more than 50% of the GDP. It has a major impact on job creation and the development of infrastructure for housing, offices, IT, healthcare, and hospitals. Currently, there is a shortage of 10.1 million affordable homes in India, and it is expected to increase to 31.2 million homes by 2030. CREDAI Maharashtra President Pramod Khairnar has emphasized the urgent need to raise the price limit for homes in Tier 2, 3 and 4 cities, where the demand for affordable homes is high.
Expectations and recommendations from the Budget:
Revive and expand Section 80 IBA benefits that provide a 100% tax exemption on profits earned from affordable housing projects to encourage developers. Prices and sizes of affordable homes should be improved according to market dynamics.
Granting 'industry status' to the real estate sector will make it easier to access funding and attract investment.
Increase the tax deduction limit on home loan interest from Rs 2 lakh to Rs 5 lakh. Reduce the GST rates on major construction materials like steel and cement.
Implement a single-window clearance system to reduce project approval delays and overall project costs.
Provide incentives for green building projects and expedite the digitization of land records, which will reduce disputes and increase trust among investors and homebuyers. Allowing FDI in limited liability partnerships could make doing business easier.
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Looking forward to cooperation
Considering the government's stability, CREDAI Maharashtra believes that implementing these measures could boost housing demand and promote the development of affordable housing. This will contribute to the growth of the real estate sector. CREDAI Maharashtra is eager to cooperate with the government in creating an enabling environment for the sector. The goal is to increase the state's revenue, contribute to economic growth, and support Prime Minister Narendra Modi’s vision of making India a developed country by 2029, contributing to India’s $8 trillion economy.--------(Pramod Khairnar, President, CREDAI Maharashtra)