Budget 2023: The real estate sector has always been constantly on the brink of making new developments to meet the trending lifestyle changes, demands and needs of the people. Despite the coronavirus pandemic, the real estate industry has made a meaningful contribution to the country.
Yet, there are some imbalances in the real estate that need a real fixing going forward. And this sector is expecting the Union Budget to offer the necessary prod that it has been looking for. The growth in real estate not only elevates other industries but also welcomes new FDI.
In 2022 the residential housing sales surged by 50% as against 2021. The stakeholders and developers believe that tax reliefs and price corrections would help the real estate to recoup.
In 2022 the sector had a good run with the likes and support by the government. Though the pandemic took every industry by a storm, including real estate, the sector delivered positive results.
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The retail leasing in India showed 114% growth rate in the initial 9 months of 2022 compared to 2021, says the CBRE report. As the startup culture has been expanding for quite some time now, the demand and requirement for office spaces leaped by 97% from January 2022 to September 2022.
Besides, the inflow of real estate investments in 2022 reached a record high of $7.8 billion. According to the Indian Market Monitor 2022, the cash flow in real estate has seen a year-on-year growth rate of 115 per cent.
Real estate 2023 budget expectations
The real estate industry is expecting to see some new reforms and price corrections.
The developers and buyers are expecting to see changes in the GST tax regulations and income tax slab rate revisions. As a result, this could fulfill the dream of affordable housing for all.
Another expectation people are willing to see is the rise in Section 80 C threshold, as it would add up to disposable income, creating a scope for more real estate investments.
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There are no stipulated norms to abide by when it comes to brokerage services in real estate. In simple words, there’s no moral imperative to pay commission either by the buyer/developer after each transaction. The realtors are expecting the government to bring the broker services in line with other services in the upcoming union budget 2023.