Changes in government policies in Real Estate Sector.

2 min read

Government policy is one of the factors affecting real estate sector. Let’s term it as a Legislation which means a law which has been enacted by any official or Government body. Legislation is a very important and it has a significant effect on the prices of the property as well as demand of the property.

After Covid Pandemic the government of India is collaboration with the governments of the several states has taken a number of steps to promote development in the sector.

The smart city project which aims to establish 100 smart cities across the India represent a significant opportunity for real estate developers.

The government initiatives for the real estate sector are:

The union budget of the year extends the tax exemption for interest on housing loans up to Rs. 2lahksh and the tax holiday for affordable housing projects until the end of the fiscal year 2023.

The Ministry of Housing and Urban Affairs (MoHUA) develops an affordable rental housing complex portal in September 2023.

India has formed sanctioned 425 SEZs shortly. The IT/BPM sector is home to the majority of special economic zones.

The government announced the implementation of the Real Estate (Regulation & Development) in the year before, in the Union territory of Jammu & Kashmir. the Act which has made it possible for any Indian citizen to purchase non-agricultural land and property, whereas before only local residents were eligible.

GST on factor

GST came into the action in year 2022 on real estate properties, let us quickly see impacts of GST on real estate.

With different materials used in construction there are different GST imposed on all and this led to the increase in the cost of construction.
Transparency and accountability in real estate was increased.
Rental market was the most benefited segment which had the most positive impact because of GST with exemption of GST from the residential property rented and 18% GST on maintenance exceeding 7.5 thousand per month.

Steady increase in the projects which are already completed and least interested in the projects which are undergoing construction.