“The year 2022 saw the real estate sector consolidate and further establish its strong footing, as the residential segment registered exceptional sales across the country. Complementing this growth prospect, the commercial segment also performed exceptionally well, setting the base for an even more eventful 2023. We expect the government to announce reforms to carry forward the momentum to bolster demand in both the residential and commercial spaces. On the residential front, considering the rise in interest rate of housing loans in the last six months, the budget should increase the tax deduction limit significantly from the existing 2 lakhs, which will provide tax-relief to home-buyers, thereby driving further demand. Taking into account the substantial increase in construction cost in the last two years, the government should also increase the cap of 45 lakhs on Affordable Housing, which in turn will aid to fulfil the Government vision of providing housing for all. The commercial segment, and the co-working space had a tremendous year with MNCs to large corporations embracing hybrid models that largely catered to the dynamic work culture. In order to boost this sector and remove the cascading impact of GST, this budget should rationalise the GST Provision by allowing input credit on work contract and construction services. This would reduce the sector's overall costs and will benefit and enable the co-work segment to grow at a faster rate in the days to come. And, in order to combat the inflation and rising cost of construction material, we expect the government should rationalise the GST Provisions with respect to availability of GST Input and removal of TDR GST on Commercial Property. Further, we expect a reduction in GST rate for construction materials like steel and cement. These actions will indirectly reduce the overall inflation in the country.”– Mr. Bijay Agarwal, MD, Sattva Group.
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