Realty hopes reforms, infra development continuity as Modi 3.0 takes charge, ETCFO


As the third term of Prime Minister Narendra Modi’s government begins, the real estate sector is optimistic, advocating for crucial reforms for continuation of growth and streamline operations.

Industry players and experts are emphasizing the need for tax rationalization and reduced approval costs to foster a more conducive environment for investment and development.

Stakeholders across the sector are hopeful for reforms will continue to stimulate growth, enhance transparency, and address the pressing challenges of affordability and sustainability.

“To shape up India’s real estate landscape, the formation of right and relevant policies will be pivotal. The Pradhan Mantri Awas Yojna (PMAY) scheme needs to be continually pushed to achieve all housing goals efficiently and time-bound. Reducing the cost of approvals, development premiums, stamp duty, and ready-reckoner rates, in addition to rationalizing tax and GST, will accentuate its growth,” said Niranjan Hiranandani, Chairman, NAREDCO National.

As cities continue to grow, the call for affordable housing reaches new heights. Industry experts are hopeful of increased government attention and incentives to address the gap between housing supply and demand. Measures like tax incentives, subsidies, and improved credit opportunities for first-time buyers could play a crucial role.

“We hope the government will continue to support the housing sector that has linkages with more than 250 allied industries. Reforms in the Goods and Services Tax (GST) structure for the realty sector is among the key expectations. A streamlined and simplified tax system would be advantageous for developers and homebuyers alike, fostering a more robust market environment,” said Deepak Goradia, CMD, Dosti Realty.

During the last two terms, the government has been pushing development of infrastructure and connectivity not only in metros and tier I cities, but also in tier II cities and towns. This has been helping in the emergence of newer commercial and housing markets.

“Infrastructure development remains a critical area. Enhancing connectivity through robust infrastructure projects not only boosts realty development but also uplifts the overall economy. We anticipate increased investment in urban infrastructure, smart cities, and transportation networks,” Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty.

Among other key factors, most industry participants stressed the need for further streamlining of regulatory frameworks that ease the process of approvals and reduce bureaucratic delays. A single-window clearance mechanism would be a game-changer, significantly improving the ease of doing business, they said.

From homebuyers’ perspective, ensuring transparency in real estate transactions remains a priority. Strengthening the Real Estate Regulatory Authority (RERA) and enhancing digital platforms for property transactions can foster trust and reduce fraudulent activities

The sector expects the government to review incentives such as interest subsidies and tax reliefs for developers focusing on affordable housing projects. Such measures could bridge the housing gap and make homeownership accessible to a broader population.

A recent Knight Frank India study has projected that the value of the Indian real estate sector will reach an estimated $1.5 trillion by 2034, constituting 10.5% of the total economic output by then. In 2023, the sector’s market size was approximately $482 billion, contributing 7.3% to the total economic output.

The sector anticipates government support for digital initiatives, including online land records and e-registration of properties. Embracing digital tools can streamline transactions and bring transparency, benefiting both developers and buyers.

  • Published On Jun 10, 2024 at 09:17 AM IST

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