Expectations are high for tax relief and other confidence boosters, as the future of the broader industry also depends on the unrestricted deployment of infrastructure to support and improve urban living standards, as well as to develop and promote newer areas.
According to Anuj Puri, Chairman, Anarock Group, the Indian real estate sector remained optimistic in 2024 till date, with home sales and new launches creating new peaks in the top 7 cities.
Sales hit an all-time high of around 4.93 lakh units in FY23-24, while 4.47 lakh units were launched.
"However, this momentum needs to continue in the future as well and the current growth trajectory is skewed towards mid-range and premium housing," Puri said.
Considering the specific housing needs of India's low-income groups, this push cannot rely solely on higher-priced housing while affordable housing continues to languish.
Many interest incentives previously awarded to affordable housing buyers and developers have expired in the last two years.
"This important segment needs to be revived with high-impact measures such as tax exemptions, for developers to focus more on affordable housing, and for buyers to improve affordability," Puri said.
The credit-linked subsidy scheme under PMAY, reintroduction of 100 per cent tax exemption for affordable housing developers and adjusting the definition of affordable housing criteria to extend the benefits of additional deductions to more buyers can help affordable housing actors.
“The government must seriously reconsider the review of house prices within the affordable housing budget, taking into account city-specific market dynamics.
“According to the current definition, the size of the units is 60 square meters. the carpet area is appropriate. However, the prices of the units (up to Rs 45 lakh) are not viable in most cities,” Puri emphasized.
Meanwhile, according to a latest report by CRISIL Ratings, net leasing of commercial office space will witness demand growth of 8-10 per cent in this fiscal year and next, amid rising demand for residential real estate and commercial.
The main drivers of this will be global capacity centers that will take into account India's large talent pool and competitive rentals, as well as healthy demand from domestic sectors.
According to the CRISIL report, residential real estate demand growth will remain between 8 and 12 per cent in this fiscal year and next, helped by favorable affordability and premiumization.
According to Anuj Puri, Chairman, Anarock Group, the Indian real estate sector remained optimistic in 2024 till date, with home sales and new launches creating new peaks in the top 7 cities.
Sales hit an all-time high of around 4.93 lakh units in FY23-24, while 4.47 lakh units were launched.
"However, this momentum needs to continue in the future as well and the current growth trajectory is skewed towards mid-range and premium housing," Puri said.
Considering the specific housing needs of India's low-income groups, this push cannot rely solely on higher-priced housing while affordable housing continues to languish.
Many interest incentives previously awarded to affordable housing buyers and developers have expired in the last two years.
"This important segment needs to be revived with high-impact measures such as tax exemptions, for developers to focus more on affordable housing, and for buyers to improve affordability," Puri said.
The credit-linked subsidy scheme under PMAY, reintroduction of 100 per cent tax exemption for affordable housing developers and adjusting the definition of affordable housing criteria to extend the benefits of additional deductions to more buyers can help affordable housing actors.
“The government must seriously reconsider the review of house prices within the affordable housing budget, taking into account city-specific market dynamics.
“According to the current definition, the size of the units is 60 square meters. the carpet area is appropriate. However, the prices of the units (up to Rs 45 lakh) are not viable in most cities,” Puri emphasized.
Meanwhile, according to a latest report by CRISIL Ratings, net leasing of commercial office space will witness demand growth of 8-10 per cent in this fiscal year and next, amid rising demand for residential real estate and commercial.
The main drivers of this will be global capacity centers that will take into account India's large talent pool and competitive rentals, as well as healthy demand from domestic sectors.
According to the CRISIL report, residential real estate demand growth will remain between 8 and 12 per cent in this fiscal year and next, helped by favorable affordability and premiumization.
