The Indian real estate sector has largely embraced the overall impact of the recent budget, though industry leaders believe it could have done more to support their cause. Pradeep Jain, chairman of Parsvnath Developers Ltd, remarked that the budget is poised to enhance the socio-economic infrastructure of the nation by placing necessary emphasis on the education, health, and hospitality sectors. Nevertheless, it appears that the budget has not completely tackled the pressing demands of the real estate industry.
The concessions announced for infrastructure and housing sectors, particularly in rural areas, are commendable. However, a reduction in duties and direct service tax benefits for consumers would have significantly bolstered demand for real estate across the country. Also, the anticipated decrease in the input costs of materials like cement and steel is expected to be advantageous for the sector.
- Chandra, managing director of Unitech Ltd, expressed optimism regarding the budget's potential effects on the real estate industry. He stated that the estimated decline in construction costs, due to reductions in duty and central value-added tax, will positively influence the market. Moreover, the housing sector stands to benefit from the raised income tax exemption limit to Rs. 1.5 lakh (approximately Rs. 110,000) and the introduction of new tax slabs, which is expected to make Equated Monthly Instalments (EMIs) for both new and existing housing loans more affordable.