Budget 2022 focus on protecting the rights of home buyers

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The country’s housing and construction sector is the second-largest employment provider in the country after agriculture. 

Hoping the developers are the upcoming budget 2022 would set the tone for the sector to scale a higher growth trajectory on the back of supportive reforms.

The housing and construction sector in the country also has proactively essayed a multiplier effect in the growth and development of the Indian economy. The Indian real estate sector’s market size would reach USD 1 trillion by 2030.

The country had the unprecedented effect of COVID-19, the residential real estate sector in the country showed a marked resilience to its adverse impact.

The Indian property sector’s market size increase is resulted in around 19-20 percent of the country’s GDP. The upbeat mood in the market is also evident from a strong rise in property registration.

The sentiments of the demand and supply in India’s housing segment have witnessed a revival on the back of low home interest rates, government reduction in stamp duties, and discount on construction premiums paid by builders.

Sales in 2021 almost reached pre-pandemic levels. The improved momentum in this country’s housing property market is widely expected to sustain in 2022.

A key proposal would to be raise the limit for home loan interest deduction for tax rebate to around 10 lakh for homeowners.

The example of the key proposal that the FM Nirmala Sitharaman should focus on raising tax reduction limits substantially on home loans in the budget.

The taxable income of homeowners provides a much-needed impetus to demand residential real estate in the country. The need to place the budget proposals will onus on driving the private sector to invest in the country’s affordable housing sector.

Consumers can get an attractive return on their investment if they decide to sell their property overtime or earn rental income by leasing out extra space.

The state should be allowed to transfer real estate holdings to family trusts without burdening them with the levy of stamp duty.

 Registration charges the concept of deemed income on additional homes should be done away with as its taxing component discourages people from buying additional homes.

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