• 22 Jul 2024 06:13 PM
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Budget 2024: Real estate players seek tax sops, REIT reforms, industry status, spending boost in Union Budget 2024-25

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Budget 2024: The commercial real estate industry has high hopes for the upcoming Union Budget. Top players are calling for a mix of tax breaks, regulatory reforms, and infrastructure spending to boost investment, ease costs for homebuyers and developers, and propel the sector's growth.

Budget 2024: The commercial real estate industry has high hopes for the upcoming Union Budget. Top players are calling for a mix of tax breaks, regulatory reforms, and infrastructure spending to boost investment, ease costs for homebuyers and developers, and propel the sector's growth.

Budget 2024: The commercial real estate industry is eagerly anticipating reforms that will bolster growth and investor confidence in the Union Budget 2024-25. Industry leaders are unified in their call for a stable tax framework for Real Estate Investment Trusts (REITs), which they view as essential for boosting the sector, stimulating economic growth, and creating jobs.

Ramesh Nair, CEO of Mindspace Business Parks REIT, emphasised the importance of reducing the minimum holding period for REIT units from 36 to 12 months and classifying REITs as equity instruments to enhance liquidity. He also highlighted the need for allowing Input Tax Credit under the GST Act for construction procurements, viewing it as a crucial step to lower costs and attract more investments. "Maintaining investor confidence in REITs with a stable tax framework is crucial as REITs play a pivotal role in boosting real estate, stimulating economic growth, and creating jobs," Nair stated.

Vimalendra Singh, Chief Business Officer (Residential) of Mahindra Lifespace Developers Ltd, underscored the importance of increasing the home loan interest deduction to 4 lakh to alleviate the financial burden on home buyers. He also pointed out that reinforcing Real Estate Regulatory Authority (RERA) implementation to ensure transparency and accountability and introducing a single-window clearance system for expediting project approvals are key expectations. "Increasing the home loan interest deduction to 4 lakh is a critical step to alleviate the financial burden on home buyers amid escalating property prices and interest rates," Singh noted.

Atul Bohra, Group CEO of Kolte-Patil Developers Ltd, stressed the need to sustain the sector's momentum with GST-related input tax concessions and reduced interest rates. He called for streamlined single-window clearance systems and potential GST rate reductions, which, he believes, will benefit both developers and homebuyers. "Our foremost expectation is for GST-related input tax concessions and reduced interest rates. These measures are crucial for providing financial relief and enhancing project feasibility," Bohra emphasized.

Anil G Verma, Executive Director & CEO of Godrej & Boyce, stressed the need to boost private consumption through measures like optimising GST rates, reviewing personal income tax slabs, and reassessing interest rates to provide EMI relief. "Private consumption drives private investment, and I am hopeful that the GoI will take steps that boost consumption through a slew of measures," Verma stated.

Amit Mor, CFO of Prestige Group, highlighted the importance of tax benefits for developers incorporating green building practices and adopting eco-friendly measures. He also mentioned the need for granting industry status to the real estate sector to reduce borrowing costs and improve access to finance. "Tax benefits for developers incorporating green building practices will attract crucial investment in green buildings and address environmental concerns," Mor said.

Sahil Verma, COO of Shray Projects, called for extending SEZ benefits to non-SEZ IT parks and providing tax incentives for companies investing in office redesigns to support hybrid work models. He also advocated for increased FSI allowances in major cities to maximise land use efficiency. 

Sanjeev Bhandari, Founder and CEO of AirBrick Infra, emphasised the need for increased infrastructure spending and tax incentives such as reduced GST rates on commercial properties. He also mentioned the importance of simplifying FDI regulations to attract more international investment. "Enhanced connectivity and infrastructure are crucial for making commercial properties more attractive to investors and businesses," Bhandari noted.

Priyatham Kumar, Founder of Homes247, highlighted the demand for organised retail and office spaces, even in Tier 2 cities. He stressed the need for policy reforms and investments to support this growth. "To support this growth, we need policy reforms and investments similar to those aimed at housing affordability," Kumar stated.

Anuj Munot, CEO & Founder of UrbanWrk, sought steps to address the high input costs of essential materials like steel and cement and demanded reducing the 28% GST on cement as well as industry status to real estate. "Reducing the 28% GST on cement and providing industry status to real estate can lower construction costs and enable developers to access loans at reduced interest rates," Munot highlighted.

Harsh V Bansal, Co-founder of Unity Group, stressed the importance of a streamlined GST framework for the commercial real estate sector. He also called for the sector to be granted industry status to improve credit access and reduce financing costs. "Granting industry status to the sector would streamline credit access and reduce financing costs," Bansal stated.

Uddhav Poddar, MD of Bhumika Group, highlighted the rapid expansion of the retail segment and the demand for Grade A retail spaces. He advocated for GST input credit availability on commercial projects and the establishment of a single-window clearance system. "GST input credit availability on commercial projects would immensely benefit this segment," Poddar pointed out.

Harsh Gupta, CEO of Sundream Group, highlighted the need for measures to lower steel and fuel input costs and address the high GST on cement. "The sector eagerly awaits measures to lower steel and fuel input costs and address the 28% GST on cement," Gupta emphasized.

Santush Kumar Pandde, COO of Real Estate at Grauer and Weil (India) Limited, pointed out the need for policies that stimulate consumer spending and drive growth in the retail sector. "Incentives for digital transformation and sustainability efforts would greatly benefit shopping malls," Pandde noted.