Reducing construction costs, granting industry status, and putting in place a single-window clearance system are still the main goals of the policy reforms developers and industry leaders are pushing for. 

The Indian real estate market is anticipating changes in the next Union Budget 2024, following periods of strong performance. By 2025, the sector’s share of India’s GDP will likely rise from 8% to 13%. According to the long-term forecast, the real estate market will grow to $1 trillion by 2030. 

Prominent industry figures anticipate that policy changes will improve transparency, expedite procedures, and spur expansion. 

“NITI Aayog’s Forecast of the Indian real estate industry reaching a market size of $1 trillion by  2030 underscores its favorable long-term outlook,” states Neeraj Sharma, MD, Escon Infra Realtors. The industry anticipates government programs that will reduce the cost of fuel, steel, and cement as inputs. Fulfilling the long-standing requests for industry status and expedited clearance producers would enable developers to apply for loans with lower interest rates and benefit from tax advantages. These actions would significantly improve the sector and encourage further expansion.” 

The real estate sector is one of the primary industries that increases GDP. Reducing construction costs, granting industry status, and putting in place a single-window clearance system are still the main goals of the policy reforms developers and industry leaders are pushing for. 

Mukul Bansal, MD of Motiaz, “India’s real estate market is expanding quickly due to rising housing demand. Strong expectations exist for the industry to receive industry status and implement a more effective single-window clearance system with the Union Budget 2024-25 drawing near. Fulfilling these enduring requests would invigorate the industry. But high taxes on basic goods like steel and cement have driven up the price of building a house. The 28% on cement is especially concerning because it highlights how quickly policy needs to change to keep up with demand.” 

Furthermore, the fact that the real estate industry employs a sizable number of casual laborers and is a major employer underscores the importance of supporting it. The importance of supporting the real estate industry is further demonstrated by the fact that it is a major employer and employs plenty of casual laborers. 

“The real estate industry plays a crucial role in driving growth in the Indian economy,” says Trisol RED’s MD, Shorabh Upadhyay. “One of its pressing needs is to obtain industry status.” With this designation, developers would receive lower-interest loans, tax breaks, and other benefits. This kind of support is necessary when finances are tight. Even with a robust rebound in recent years, the industry still needs  continuous  support from the government to maintain its upward trend.” 

“Commercial real estate stands as a pivotal driver of the country’s GDP growth, warranting high expectations from the government ahead of the Union Budget 2024-25,” says Sundaram Group CEO Harsh Gupta. The sector would benefit from easier access to credit and lower financing costs if it were given industry status, which is essential to meet the rising demand for commercial real estate. The industry awaits actions to address the 28% GST on cement and reduce the cost of steel and fuel inputs. Additionally, maintaining momentum and encouraging entrepreneurship in commercial real estate requires establishing a single-window clearance system.” 

These steps might accelerate the sector’s growth when combined with incentives for eco-friendly and effective procedures. 

Pyramid Infrstructure’s Ashwani Kumar states, “Despite industry optimism, challenges still exist. Prices play a big role in the real estate market, and building new projects becomes more expensive due to high taxes on basic materials like steel and cement. We expect a streamlined approval process and implore the government to address this matter. One of the main industries in the country that creates jobs is real estate, so policies that encourage it will benefit the economy as a whole.”