In Short:
Industry leaders in the commercial real estate sector are looking forward to reforms in Budget 2024-25 to boost growth and investor confidence. Key expectations include stable tax framework for Real Estate Investment Trusts, reducing the holding period for REIT units, increasing home loan interest deductions, streamlining approval processes, enhancing green building practices, and addressing high input costs. Granting industry status and reducing GST rates are crucial for the sector’s growth.
Real Estate Players Look for Tax Sops and Reforms in Budget 2024
The commercial real estate sector is abuzz with excitement as they eagerly await the Union Budget 2024-25, hoping for reforms that will boost growth and investor confidence. Let’s dive into what industry leaders are hoping for:
Stable Tax Framework for Real Estate Investment Trusts (REITs)
Ramesh Nair, CEO of Mindspace Business Parks REIT, stressed the importance of a stable tax framework for REITs to enhance liquidity and boost the sector. He highlighted the need to reduce the minimum holding period for REIT units and allow Input Tax Credit under the GST Act for construction procurements.
Support for Homebuyers and Developers
Vimalendra Singh, Chief Business Officer (Residential) of Mahindra Lifespace Developers Ltd, highlighted the importance of increasing the home loan interest deduction to ₹4 lakh. He also emphasized the need for reinforcing Real Estate Regulatory Authority (RERA) implementation and introducing a single-window clearance system for project approvals.
Atul Bohra, Group CEO of Kolte-Patil Developers Ltd, called for sustained momentum in the sector with GST-related input tax concessions and reduced interest rates. He advocated for streamlined clearance systems and potential GST rate reductions to benefit developers and homebuyers.
Boosting Private Consumption and Green Practices
Anil G Verma, Executive Director & CEO of Godrej & Boyce, highlighted the need to boost private consumption through measures like optimizing GST rates and reviewing income tax slabs. He emphasized the importance of tax benefits for developers incorporating green building practices and adopting eco-friendly measures.
Amit Mor, CFO of Prestige Group, stressed the importance of tax benefits for developers focusing on green building practices and the need for granting industry status to the real estate sector.
Infrastructure Development and Policy Reforms
Sahil Verma, COO of Shray Projects, called for extending SEZ benefits to non-SEZ IT parks and tax incentives for companies investing in office redesigns. He also advocated for increased FSI allowances in major cities to maximize land use efficiency.
Sanjeev Bhandari, Founder and CEO of AirBrick Infra, emphasized the need for increased infrastructure spending and tax incentives like reduced GST rates on commercial properties. He highlighted the importance of simplifying FDI regulations to attract more international investment.
Growth in Tier 2 Cities and Cost Reduction
Priyatham Kumar, Founder of Homes247, stressed the demand for organized retail and office spaces in Tier 2 cities. He highlighted the need for policy reforms and investments to support this growth.
Anuj Munot, CEO & Founder of UrbanWrk, sought steps to address high input costs of essential materials and called for reducing the 28% GST on cement and providing industry status to real estate to lower construction costs.
Streamlining Processes and GST Framework
Harsh V Bansal, Co-founder of Unity Group, emphasized the importance of a streamlined GST framework and granting industry status to the sector for improved credit access and reduced financing costs.
Uddhav Poddar, MD of Bhumika Group, underlined the need for GST input credit availability on commercial projects and a single-window clearance system to support the rapid expansion of the retail segment.
Addressing Input Costs and GST Rates
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 to boost the sector.
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.
