Recently Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on
inclusive development, infrastructural development, green growth, and the empowerment of
Indian youth. Beyond those above, the personal tax rebate move is going to be a significant
milestone that will encourage more Real Estate Investment by youthful homeowners. Such
positive announcements would likely influence this sector progressively. Now the question is:
“how would this budget help boost the Indian Real Estate Sector?” Whether it meets the
expectations of the Industry or not, the answer is hidden in the core of the future.
Propshop Real Estate Consultant has made its own prediction depending on the above inputs
and the government’s positive moves. Yes, it was a much-anticipated event for residential and
commercial real estate that will definitely show a major boom in this sector. Major transformation
shall be for the youth investors, who are searching for a long-term investment, and for their
fulfillment of the dream of a luxury lifestyle in a well-connected prime location.
Now, talking about funds allocated to the real estate sector. The government has announced
raising the PMAY funds to rupees 79,000 crores and another infrastructural spending that look
like proactive steps for long-term substantiate growth. Whether it’s for urban infrastructural
development, the revival of airports and ports, artificial intelligence (AI) centers for cities, and so
on are the steps which should be appreciated. However, a lot of changes will potentially affect
the real estate sector diversely.
Key highlights that will be impacting the real estate sector:
❖ E-assessment Scheme for Direct Tax
❖ 10% Tax on LTCG, on the sale of property held for >2 years
❖ Tax Exemption on income yielded in the form of rent on or up to two houses
❖ Increment of Custom Duty on constructional Raw Material
❖ Etc
