“2022 has been deemed as the year of unprecedented progress. Through the upcoming Union Budget, we are optimistic that the government will empower the real estate sector with growth opportunities and pave the way for economic development. We look forward to dynamic policies that will address the sector’s challenges.
Reducing the GST and the input tax or allowing for an input tax credit can help developers stabilise the rising costs of raw materials. Currently, margins are hurt as labour and commodity costs have risen. This has also placed greater pressure on homebuyers.
The real estate sector is one of the largest employment generators of the country and is a key driver of the national GDP. We are hopeful the government will grant the sector industry status. This will help developers apply for loans at low rates from the bank and will be a big step to organise the sector. In addition, the government should consider reviewing the income tax deductions and increase sops on loans being availed by consumers. Due to the excellent liquidity in the banking sector, fuelling retail customers for their real estate purchases will help boost the lending capacity. Thus, by continuing the tax benefits and increasing them on the ownership, the principal repayment and the interest will become advantageous for the end customer.
We are confident that through these reforms and measures, the realty and its allied sectors will be ushered into a growth path and have a positive impact on the economy.”