Budget 2024: With China's real estate reforms in place, is it time for India to up the ante too in Budget?

economictimes.indiatimes.com:

Union Budget 2024: India's ambitious goal of becoming a developed country by 2047 closely aligns with the growth of its real estate sector. Thanks to its impressive economic surge in recent times, supported by the real estate sector's contributions to urban development, it is anticipated that by 2030, 40% of India's population will reside in urban areas. While other growth indicators are on the rise, India’s real estate industry will play a crucial role in achieving the country's sustainable development goals, given that it accounts for 8% of its GDP. Looking ahead, real estate could serve as the cornerstone of a resilient economy, around which all other factors would revolve.

Lessons from the neighbour

India must accelerate its growth to maintain a competitive edge over China, which recently implemented a series of reforms aimed at revitalising its struggling real estate sector. According to a Bloomberg report, the People’s Bank of China has effectively removed the nationwide minimum mortgage interest rate. Additionally, they have lowered the minimum down-payment ratio for first-time homebuyers to 15 per cent and for second homes to 25 per cent, down from 20 per cent and 30 per cent respectively.

The remarkable growth seen in India’s real estate sector in 2023 suggests that expectations for the upcoming Union Budget 2024 align with the goal of significantly boosting the sector. There is no better time to unleash a flurry of reforms, as India aims to increase its real estate sector's contribution to GDP from 8