The Finance Ministry has announced that it is very likely that the Indian economy will achieve a growth rate of or above 7 per cent for the Financial Year 24.
Real Estate and Coworking Sector: On February 1, the Finance Ministry will present the Interim Budget 2024 in which the Finance Ministry has announced that it is very likely that the Indian economy will achieve a growth rate of or above 7 per cent for the financial year 24. Notably, several other experts have said that the economy may achieve another year of 7 per cent real growth in FY25 as well.
If the prognosis for FY25 turns out to be right, it will mark the fourth year post-pandemic that the Indian economy will have grown at or over 7 per cent. That would be an impressive achievement, testifying to the resilience and potential of the Indian economy.
Amidst all this, here are a few expectations from the corporate world.
“The Indian real estate sector continued to scale new heights in 2023 driven by positive market sentiments. economic expansion, urbanization, evolving lifestyles, rising disposable incomes, better employment opportunities, increased business activity, and government policies amongst others. There is an express need for more tax sops for both homebuyers as well as investors. The government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to housing demand, reduce GST reduction on under-construction properties, and effect adjustments in raw material pricing,” said Ramani Sastri, Chairman & MD, Sterling Developers Pvt. Ltd.
Sharing his views, Manas Mehrotra, Founder, 315Work Avenue, said, “The coworking industry has become more relevant than ever with the demand surging significantly in the recent times owing to its affordable pricing options and flexible work culture. Large enterprises too have shifted gears to coworking space as they embraced the hybrid work model to suit their organizational requirements. India continues to be the fastest growing flex office market in the APAC region and is set to account for one-fifth of the office market by 2030. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming interim Union Budget that can further accelerate growth of this sector.”
“This year, we have seen robust growth in both residential and commercial real estate, especially in the luxury home segment. Some of the contributing factors for this growth can be identified as ease of fractional ownership, capital appreciation in investing in non-urban locales, evolving buyer demographics, WFH culture, etc. The infrastructural development in various parts of the country and the ease of connectivity between urban and semi-urban areas have also contributed to this growth. Apart from financial aspects, the changing priorities of homebuyers are also playing a major role in the growing demands,” opined Lincoln Bennet Rodrigues, Chairman and Founder, The Bennet & Bernard Company.
Vikas Garg, Joint Managing Director, Ganga Realty said, “The Union Budget 2024 should concretize the long-standing demand for conferring an industry status to the real estate sector. Granting an industry status will make the sector eligible to procure capital and interest subsidies and get exemptions and remissions from stamp duty, tariffs, and other duties. There is also a dire need to institute single window/fast track clearance processes and mechanisms in the light of many projects facing protracted delays and home buyers suffering the brunt of delays, as a consequence. The government should also cogitate on increasing the home loan tax rebate and lowering repo rates which will provide a level-playing field to the sector and help to attract home buyers and stave off the continuous cycle of home price inflation.”
Meanwhile, Saransh Trehan, Managing Director, Trehan Group, said, “We believe that the Budget should echo the rightful expectations of the real estate sector demanding industry status recognition. It will streamline the sector’s aspirations of being at the receiving end of benefits such as getting interest subsidies and relaxations from stamp duties and other forms of tax exactions. It will help the sector bounce back and regain its momentum, boosting demand as well as sales. The real estate sector is also wishful of the government upshifting the home loan tax rebates with an aim to provide immunity to home buyers, which will ultimately lead to an uptick in sales and real estate demand. Special incentives and timelines should be introduced to promulgate, pace up, and speed up Infrastructural projects in Tier 2 and 3 cities to embolden buyers to invest in the thriving real estate markets brimming with superlative property options and types.”