Budget Expectation from Vihang Group, Square Feet Group, Veena Group and Bhairaav Group
Budget Expectation Spokesperson – Vihang Sarnaik, Director, Vihang Group
“A critical facet of my expectation from the Budget is the re-evaluation of affordable housing criteria. I expect the Honourable Finance Minister will find some merit in establishing a separate affordable housing index for each Tier-1 and Tier-2 cities with impetus to the housing affordability of the Metro Cities Periphery.
It is crucial to incorporate essential factors such as inflation, land cost, construction cost, approval cost, and labour cost for defining affordability in housing.
For instance, in the case of Mumbai, where housing costs are notably high, we hope that the Budget will increase the price ceiling of affordable housing from ₹45 lakhs to ₹90 lakhs so that the whole affordable scheme benefits reach its intended audience.
As per the current affordable housing scheme, the limit is set at ₹45 lakhs and you will not find a single home in Mumbai in that price bracket. So, the scope of availing the full benefit of credit link subsidy under PMAY is non-existent in Mumbai.
According to me, the Government should redefine affordable housing and extend the Credit Linked Subsidy Scheme (CLSS) and Pradhan Mantri Awas Yojana (PMAY) to a larger audience as per the existing real estate prices prevalent in the city and not make it centralised. I think such a move will empower the unorganised sections and salaried professionals to fulfil their dream of owning a home in a city like Mumbai.”
Budget Expectation Sachin Marani, Director – Square Feet Group, Secretary – CREDAI MCHI – Thane
“As we stand on the cusp of a new budget coupled with a promising urban housing scheme, the potential for transformation looms large, particularly for families inhabiting rented homes, slums, chawls, and unauthorized colonies within cities. These financial initiatives carry the promise of a substantial impact, especially in bustling metropolises like Mumbai, where nearly 30% of the population resides in unorganized housing.
In the throes of an election year, the hopeful expectation is that the budget will hone in on fostering home ownership among marginalized and organized segments of society. A critical focal point emerges—the formidable challenge faced by those in unorganized housing, particularly the hurdle of securing loans due to the lack of clear documents such as Form 16. An astonishing 90% of individuals in these housing arrangements presently find themselves excluded from home loan eligibility due to paperwork constraints.
As the year 2024 unfolds as an election year, the anticipatory gaze turns towards the budget potentially addressing this pressing issue. The hope is for the formulation of measures involving guarantees and assurances to banks, accompanied by favorable adjustments in interest rates and loan terms.
Budget Expectation Nikunj Sanghvi, Managing Director – Veena Group, Treasurer- CREDAI-MCHI
In the context of the upcoming budget and the proposed housing loan scheme, addressing gender disparities in property ownership emerges as a pivotal aspect deserving attention. With a stark 3% ownership rate among women compared to men in India, it is imperative for the Government to consider targeted measures in this budget.
An optimistic expectation is the introduction of tax benefit schemes exclusively designed for working women. Envisioning a tax saving scheme offering up to ₹3 lakh on the principal amount for their initial home purchase. Such an initiative not only serves as an incentive for property ownership but also contributes significantly to fostering gender equality and empowering women financially.
The government should also offer additional 1 or 2 percent interest waiver for women under the new credit-linked housing loan scheme.
The tax benefit combined with interest waiver is poised to be a compelling catalyst, further attracting women to invest in real estate. Moreover, a potential exception to the section 24(b) cap of ₹2 lakh on interest paid by first-time female homebuyers would not only encourage their entry into the real estate market but also pave the way for greater financial independence among women in our society.
Budget Expectation Madan Jain, Chairman of the Bhairaav Group and President of CREDAI-MCHI Navi Mumbai
“In anticipation of a pivotal general election, the interim budget holds the potential to make significant strides in fostering economic inclusivity, with a focus on tax exemptions for home purchases. A key expectation is the introduction of a tax exemption up to Rs 5 Lakhs, encompassing Rs. 2 Lakhs on the Principal Loan Amount and Rs. 3 Lakhs on Home Loan Interest.
This proposed fiscal measure, coupled with the government’s commitment to a credit-linked home loan subsidy, underscores a dedicated effort to alleviate financial burdens for the salaried middle class. The envisaged synergy between tax reforms and a targeted approach to affordable housing not only promises to invigorate the real estate sector but also aims to enhance financial inclusivity by broadening access to home ownership opportunities.
The transformative potential of such initiatives aligns seamlessly with the overarching goal of creating a more equitable society. This will mark as a progressive stride in economic policies, signaling the government’s dedication to relieving financial pressures and nurturing an inclusive economic environment.