For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Budget Expectations For The Real Estate Sector

By Cyrus Mody
|

The year 2022 was a good year for real estate. Good projects in good locations saw high sales traction. Due to the commodity price rises we witnessed the luxury segment performing well as compared to the affordable housing sector. We are in a positive phase and overall it was a good year for real estate.

 
Budget Expectations For The Real Estate Sector

Going forward in 2023, we think the good times are here to stay due to the large pent up demand which is still being witnessed. What was really holding the buyers back from making a purchase decision was a lack of confidence in the developers ability to deliver. However, RERA has brought about a huge amount of confidence to the buyer and so has the availability of finance in the market that has boosted positive buyer sentiment. As we approach the date for the Union Budget announcement for 2023, the Indian Real estate sector is expecting several of its demands to be fulfilled.

 

It is believed that changes to demands during this budget may give some relief to the sector, with the Finance Minister Nirmala Sitharaman making several reforms. A good hand holding from the government can help the sector be in control of the situation, after its share of ups and downs with Demonetization, GST and RERA followed by the Lockdown in quick succession. It is expected that the Union Budget 2023 should offer personal tax relief, by lowering tax rates and or by readjusting tax slabs.

This move would boost housing absorption in the luxury segment. To combat inflation, RBI had raised their repo rates during their policy announcements in 2022. In 2023, we expect fewer hikes in the repo rates as compared to the last year. It is believed that these policy announcements, along with factors such as tax structure will influence the Indian real estate market on the whole during the upcoming Union Budget.

The demand for luxury housing in India has been increasing at an exponential rate. With many working from home, a rising number of buyers are turning to luxury residences as a profitable investment option, realising the value of a hassle-free lifestyle.

According to the JLL research, the year 2022 saw the highest real estate sales in the last decade with units in the residential segment priced at Rs 1.5 crores and above, contributing to 19% of the overall sales recorded in 2022. Given this positive sentiment, it is certain that the luxury real estate market has grown significantly over the past few years, and the luxury segment of real estate appears to have a bright future. Despite a positive outlook, the expansion of the Indian real estate market will be influenced by the efforts and policies that are announced in the upcoming Union Budget, with changes in mortgage rates, the state of the employment markets, and the overall economic situation touted to influence the sector.

We are hopeful that the BMC sees the amount of revenue that it recognised during the relaxation in the premiums as a result of COVID and provide some sort of SOP to developers going forward.

(Cyrus Mody is the Founder & Managing Partner at Viceroy Properties)

Story first published: Friday, January 20, 2023, 8:19 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X