Real estate developers in Noida and Greater Noida are eagerly awaiting the first Budget of the Modi 3.0 government. They hope for the sector to be given ‘industry status’ for easier access to funds and seek reforms related to GST, including addressing the 28% tax on cement.
Industry Status and Tax Reforms
Developers are calling for a nuanced approach to their sector’s challenges. They seek the government’s support beyond fiscal incentives, focusing on enhancing transparency and efficiency through a robust regulatory framework and streamlined approval processes.
Dinesh Gupta, Secretary of CREDAI’s Western UP chapter, emphasized that boosting the real estate sector with tax incentives, improved tax structures, and a single-window clearance policy will encourage further investment from both domestic and foreign sources.
Encouraging Investment and Economic Growth
Gupta explained, “Tax reforms that lower income taxes for both corporations and individuals, simplify tax legislation, offer targeted incentives, expand the SWAMIH stress fund, and lower the GST rates on building materials will boost the building industry and improve the situation for real estate players.” He believes these reforms will increase the amount of money accessible to taxpayers, enabling them to buy real estate more enthusiastically and ultimately speed up the nation’s economic growth.
Contribution to GDP
Ashish Bhutani, CEO of Bhutani Group, highlighted that the real estate sector’s contribution to GDP in India is much lower compared to Europe or China. He aims to increase this contribution to 30% by 2047. Bhutani advocates for 100% relief on GST for low and mid-income housing and suggests a GST rebate system that allows developers to pass on input credits to buyers.
Enhancing Transparency and Efficiency
Avneesh Sood, Director of Eros Group, stressed the importance of a nuanced approach. He believes the Budget should focus on enhancing transparency and efficiency through a robust regulatory framework and streamlined approval processes. Sood also suggested introducing innovative financing mechanisms, such as green bonds tailored for sustainable urban development, aligning economic growth with environmental stewardship.
Access to Low-Cost Financing
Amit Modi, Director of County Group, emphasized the need for industry status to enable easier access to low-cost financing, which would benefit consumers directly. He also highlighted the importance of implementing single-window clearance for timely project completion and cost efficiency. Additionally, Modi called for the reintroduction of GST input credits for residential real estate to stabilize costs and suggested increasing the home loan interest exemption to Rs 8 lakhs annually to support first-time buyers.
Improving Housing Accessibility
Himanshu Garg, Director of RG Group, noted the importance of improving housing accessibility by raising tax slabs and revising the affordable housing limit. He suggested raising the housing affordability cap in metro areas, including NCR, from Rs 45 lakh to Rs 75 lakh. Garg also emphasized the need for low home loan rates and increasing the limit of the credit-linked subsidy scheme (CLSS).
Noida real estate developers are hopeful that the upcoming Budget will address their key concerns, including industry status, GST reforms, and streamlined approval processes. These measures are expected to boost investment, enhance transparency, and improve housing accessibility, ultimately contributing to the sector’s growth and the nation’s economic development.
