As we edge closer to the Union Budget 2024-25, the real estate sector is buzzing with anticipation, especially when it comes to affordable housing. With the Budget 2024 date set for July 23, 2024, all eyes are on Finance Minister Nirmala Sitharaman and the potential reforms she might introduce.
Image: ET Now
What the Real Estate Sector Hopes For?
The real estate community is eagerly awaiting changes that could redefine the affordable housing sector. Will we see a revival of incentives like the credit-linked subsidy? Or perhaps a redefinition of what constitutes affordable housing? As we gear up for the big announcement, let’s delve into the key expectations for affordable housing from the Union Budget 2024.
Image: Business Standard
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Revisiting Affordable Housing Definitions
Industry experts have long argued for a revision in the definition of affordable housing. Currently, affordable housing is defined as a property with a carpet area of up to 90 sq m in non-metropolitan cities and 60 sq m in metro cities, valued at up to Rs 45 lakh. However, in cities like Mumbai and Delhi, this price cap is quite restrictive, considering the market rates.
To address this, there is a push to increase the budget limit for affordable homes in metro cities to Rs 70-75 lakh. This change would allow more properties to qualify as affordable, enabling a broader range of buyers to benefit from government subsidies and reduced GST rates.
Housiey, your trusted partner in finding the best deals in real estate, supports this move and believes it will open up the market for more buyers. Whether you’re looking for affordable homes in Pune or Mumbai, Housiey has got you covered.
The Role of PMAY
Launched in 2015, the Pradhan Mantri Awas Yojana (PMAY) was a game-changer, aiming to provide ‘Housing for All’ by 2022. With an increased budget allocation of Rs 80,671 crore for FY 24-25, expectations are high. Expanding this program and enhancing the SWAMIH fund, which focuses on stalled housing projects, could significantly boost the real estate sector.i
Housiey is excited about these potential developments and looks forward to helping more families find their dream homes through these initiatives.
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Tax Benefits and Home Loan Modifications
One of the most anticipated changes is in the realm of tax incentives. Industry experts are advocating for broader tax deductions on principal repayments and aligning interest exemptions on home loans with inflation rates. There’s also a call for a standard one percent stamp duty rate for affordable housing nationwide.
With these changes, Housiey expects to see a significant boost in the demand for affordable housing. If you’re worried about the budget effect on home loan interest rates, stay tuned for updates from Housiey.
Curbing Rising Rentals
Image: Economic Times
Rental prices have surged post-COVID lockdowns, creating a challenge for many. Implementing the Model Tenancy Act and finalizing state rental housing policies could be game-changers. Additionally, reassessing the loss set-off limit under the Income Tax Head for House Property could bring back investors and stabilize the rental market.
Other Expectations from Union Budget 2024
The real estate sector is also hoping for:
- Industry status for the housing sector
- Single-window clearance systems for affordable housing projects
- Affordable rental housing schemes similar to PMAY
- An increase in the capital base of the SWAMIH Fund to at least Rs 50,000 crore
- More steps to ease doing business
If these steps are implemented, the future looks bright for affordable housing. Housiey is ready to assist you in navigating these changes and finding the perfect home.
Also Read:- What Are The Government Taxes On Property Purchase In Mumbai
FAQs
What is the Budget 2024 Date?
- The Union Budget 2024-25 will be announced on July 23, 2024.
How will the New Budget Affect Home Buyers?
- The new budget is expected to introduce reforms that could make affordable housing more accessible, such as revising the price limits and providing more tax incentives.
What Impact Will the Budget Have on Home Loan Interest Rates?
- The budget might include measures to align home loan interest rates with inflation, potentially making loans more affordable.
Are there any Specific Changes Expected for Affordable Houses in Mumbai?
- Yes, there is a proposal to increase the budget limit for affordable homes in metro cities like Mumbai to Rs 70-75 lakh.
How can Housiey Help with Finding Affordable Homes?
- Housiey offers a wide range of listings for affordable houses for sale and provides expert guidance to help you navigate the real estate market.
Stay connected with Housiey for the latest updates and the best deals in affordable housing.
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