Budget 2023: What the realtors want from the government

India

oi-Vicky Nanjappa

New
Delhi
Dec
19:
Realtors
body
CREDAI
today,
in
its
pre-Budget
wish
list,
has
sought
an
increase
in
the
deduction
limit
on
home
loan
interest
to
₹
5
lakh
from
the
current
₹
2
lakh
in
view
of
hardening
of
mortgage
rates
since
May.

The
interest
rates
on
home
loans
have
gone
up
by
around
2
percentage
points
in
the
last
seven
months,
to
around
8.5
per
cent
following
the
hike
in
repo
rates
by
225
basis
points
since
May.

CREDAI
noted
that
EMIs
(Equated
Monthly
Instalments)
on
home
loans
have
gone
up
because
of
a
rise
in
mortgage
rates.

Hence,
the
association
said
there
is
a
“compelling
need
to
increase
the
existing
limit
of
₹
2
lakh
on
exemption
of
interest
paid
on
home
loans
to
at
least
₹
5
lakh.”
This
would
not
only
give
some
extra
disposable
income
in
the
hands
of
middle-income
homeowners
but
would
also
attract
prospective
homebuyers
to
buy
a
home,
it
added.

Why
a
forum
of
trade
unions
have
decided
to
boycott
budget
meeting?

CREDAI
President
Harsh
Vardhan
Patodia
said:
“Our
recommendations
are
focused
on
sustaining
the
current
growth
in
the
sector,
boosting
demand
and
exemptions
for
homebuyers.
The
real
estate
sector
can
add
millions
of
livelihoods
in
a
short
time
and
significantly
contribute
to
GDP.”
He
noted
the
continuous
hike
in
key
interest
rates
might
cause
short-term
turbulence
in
overall
housing
demand.

“The
sector
has
begun
to
gradually
recover
across
key
property
markets,
primarily
driven
by
end-users.
However,
repeated
rate
hikes
may
have
an
impact
on
the
interest-sensitive
sector,”
Patodia
said.

Moreover,
CREDAI
suggested
that
the
price
cap
of
₹
45
lakh
on
units
to
qualify
as
affordable
housing
needs
to
be
revised
as
there
have
been
substantial
changes
in
the
prices
of
various
construction
raw
materials,
labour
costs
and
overall
construction
costs,
news
agency
PTI
reported.

To
boost
demand,
CREDAI
urged
the
government
to
incentivise
homeowners
by
exempting
100
per
cent
of
the
rental
income
up
to
₹
20
lakh
per
annum.
This
would
encourage
people
with
disposable
incomes
to
invest
in
properties
for
renting
purposes.

The
Confederation
of
Real
Estate
Developers’ Associations
of
India
(CREDAI)
represents
over
13,000
private
developers
across
221
city
chapters
in
21
states.

Among
other
pre-budget
demand
from
industry
players,
Pradeep
Aggarwal,
Founder
&
Chairman
of
Signature
Global,
said,
“keeping
in
view
high
inflation
and
significant
rise
in
borrowing
cost
in
the
last
few
months,
there
is
an
urgent
need
of
tax
sops,
especially
for
home
buyers
in
affordable
and
mid-segment
housing,
to
overcome
the
financial
hardship.”
He
said
the
government
should
enhance
the
deduction
limit
against
interest
payment
on
home
loans.

Amidst
inflation
concerns,
Sitharaman
speaks
of
very
carefully
structured
budget

Subhankar
Mitra,
Managing
Director
of
Advisory
Services,
Colliers
India,
said
there
is
a
need
to
give
a
further
push
for
affordable
housing.
“Any
institutional
support
mechanisms
for
the
stalled
projects
would
also
be
a
timely
intervention,”
he
added.

Piyush
Bothra,
Co-founder
and
CFO
of
Square
Yards,
said
the
price
cap
of
₹
45
lakh
limit
for
affordable
housing
should
be
increased
to
₹
80
lakh
in
metro
cities
and
60-65
lakh
in
non-metro
cities,
so
that
more
people
can
take
benefits
of
lower
GST
rates,
government
subsidies
and
tax
deduction
benefits
on
home
loans.

Property
consultant
Anarock
Chairman
Anuj
Puri
too
said
the
₹
2
lakh
tax
rebate
on
housing
loan
interest
under
Section
24
of
the
Income
Tax
Act
needs
to
be
hiked
to
at
least
₹
5
lakh.
“This
will
add
momentum
to
housing
demand,
particularly
in
the
affordable
segment,”
he
said.