One of the long-standing demands of the real estate sector is to be provided with the industry status. It will help in fundraising for projects from various schemes.

The sector also hopes that the budget will introduce GST reforms by bringing back the Input Tax Credit. This will help in bringing down the cost of construction thus reducing the property prices. Furthermore, the sector expects GST waiver for under-construction properties in the housing sector. These reforms will push the demand in the sector and ease the prevailing financial crunch.

Higher tax relief for the home buyers would also be a demand. The cap of Rs 2 lakh on housing loan interest under section 24(b) of IT act should be extended up to Rs 5 lakh. This will give more dispensable income in hands of people and subsequently drive demand.

One of the most critical issues currently faced by the real estate is the liquidity crunch. Due to this, there are delays in project delivery, high project costs and inflated property prices. The government should relax the fundraising norms and ensure the implementation of alternate investment funds. More importantly, the government should incentivise the private sector to invest in the affordable housing sector.

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