IGI Logo

Below the Budget Expectation Quote on Real Estate Sector by Saurabh Runwal, Director, Runwal Realty

"As India’s real estate sector stands at a transformative crossroads, the upcoming budget holds the potential to catalyze a phase of unprecedented growth. With the sector’s current valuation of over $477 billion and its trajectory towards a $1 trillion market by 2030, it’s crucial that the budget addresses both immediate challenges and long-term opportunities.

The need for policy measures that enhance liquidity is critical, and this includes reducing long-term capital gains taxes, streamlining REIT regulations, and increasing interest rebates for housing loans. These reforms will drive both domestic and foreign investments, enabling developers to access capital more competitively, and homebuyers to realize their dreams of owning property, especially with the luxury market seeing a 51% growth in demand.

Furthermore, granting real estate industry status is vital. It will not only reduce land acquisition costs but also make financing more accessible, leading to more affordable housing. With land comprising up to 70-80% of costs in major metros, these reforms will directly impact the affordability and scalability of residential projects. In addition to financial measures, the sector urgently requires a workforce that is equipped to deliver on the aspirations of modern India. Upskilling is paramount, particularly in technology integration and quality control, to ensure that the burgeoning demand for smart, sustainable cities is met with precision.

The implementation of modern urban governance frameworks, including streamlining approvals and improving land use policies, will be instrumental in speeding up project timelines and ensuring that urban spaces are well-planned and equipped to support the population growth expected in the coming years.

The upcoming budget presents a golden opportunity to unlock the sector’s full potential and accelerate India’s ambition of becoming a $5 trillion economy, with real estate playing a leading role."

Above views are of the author and not of the website kindly read disclaimer