Real estate has high hopes from the 2022 budget

For the last two years, the real estate industry has gone through a rollercoaster ride.

 Similarly to many other industries, it also saw a challenging year in 2020.

The buyer’s financial situation was severely affected by the lockdown. The industry, however, managed to rise again even in the face of the strong winds in 2021. Trends have also shown that the graphs are increasing yet again. 

The economy is expected to grow at a rate of 9 per cent next year and the real estate sector is expected to contribute 13 per cent to India’s GDP by 2025.

 Stakeholders and major players of the market have high hopes from the budget 2022 which will be presented by finance minister Nirmala Sitharaman. The budget is expected to give a boost to the industry which has been able to bear the effects of the pandemic quite successfully.

According to an article by Amit Agarwal, cofounder and CEO of NoBroker.com home purchase is currently on the priority list for many people. The pandemic has changed the perception of homeownership for all especially for NRI’s. The same conclusion can be drawn out of the survey conducted by NoBroker.com in 2021.

Amit Aggarwal provides detailed information about the points that the budget should have for the coming year to be beneficial. He says that the definition of affordable houses should be readjusted to city-specific standards and that the government should introduce benefits to mid-segment housing.

Experts suggest that the government might reduce the GST and input tax rates of construction raw materials to 5 per cent. “Fiscal stimulus like stamp duty waiver, lowering of ready reckoner rates, low-interest rates will augment home buying demand and improve sales velocity,” said Niranjan Hiranandani, Managing Director, Hiranandani Group.

It is also suggested that the government should ease home loan requirements for buyers.

According to Hiranandani “the union Budget 2022 needs to increase home loan interest deductions to Rs. 5 lakhs and enhance the quantum of real estate stress fund up to Rs 125,000 crores giving it an industry status to spur growth and accelerate job creation in the country”.

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