Budget 2023: Real estate sector, homebuyers' expectations

The real estate industry saw a promising 2022. A research report by Anarock consultants says that residential property sales grew by 50% last year as compared to 2021. However, now, the industry is hoping for significant measures in Budget 2023, to sustain the growth that the sector has seen.

Affordable housing: In cities like Mumbai, Delhi-NCR and Bengaluru, the definition of affordable housing is changing. Therefore the real estate industry is seeking an increase in the price cap of affordable housing from the current Rs 45 lakh to Rs 75-80 lakh.

Home loan interest rates: The real estate industry has also recommended that government should increase deduction limit under Section 24. Currently, taxpayers can claim a deduction for interest paid on a home loan up to Rs. 2 lakhs. If it is extended to Rs 5 lakh, it would be a big boost the real estate sector.

Affordable rental housing: In order to boost rental housing for the affordable sector, the government should include measures such as providing tax incentives for developers who build rental housing projects.

Single-window clearance: According to Anuj Puri, Chairman of Real estate agency - Anarock Group, the demands for single-window clearance and industry status for real estate are among the recurrent ones and have yet to be addressed. The sector hopes that the forthcoming budget will finally address it.