Bhavik Bhandari, CSMO, Ashwin Sheth Group

MUMBAI, 16 JANUARY 2024: Amidst the anticipation surrounding the upcoming budget, the Indian real estate sector expects a strong resurgence in housing demand this year, with expectations that the Union Budget 2024 will serve as a supportive and facilitative factor in this regard. As we look forward to the government's fiscal policies, we emphasize the need to incentivise the luxury housing segment, acknowledging its role in fostering elevated living standards.

The Union Budget has significantly influenced the industry's trajectory. The surge in affordable housing demand has been facilitated through the expansion of the Affordable Housing Program, augmented allocations for PMAY, and the elevation of the income tax deduction limit for home loan interest. This collective effort has provided a crucial uplift to the entire sector. In the context of luxury housing, we propose tailored initiatives that can contribute to the growth of this segment. Recognizing the unique challenges faced by luxury housing developers, we urge the government to provide targeted incentives to encourage the development of high-end properties. Rationalizing GST rates on construction materials, particularly those associated with luxury housing projects, is crucial to maintaining the sector's competitiveness and ensuring sustainable growth. Additionally, we advocate for measures that ease regulatory complexities associated with luxury housing developments, facilitating a smoother and more efficient process.

As the real estate landscape navigates the challenges posed by rising repo rates, our collective focus should be on enhancing luxury homeownership through thoughtful fiscal policies. By addressing these considerations, the government can foster an environment conducive to the sustainable growth of the luxury housing sector. For the continued development and global competitiveness of luxury housing in India, we look to the upcoming budget with optimism, hopeful that it will echo the industry's aspirations, providing a comprehensive framework that fosters sustainable growth, affordability, and accessibility in the Indian real estate sector. We anticipate a steady rise in demand, though potentially at a more moderate speed, as it is fueled by the robust economic growth of the nation and the outlook for a reduction in interest rates for home loans”.