Piyush Bothra, Co-Founder and CFO of Square Yards has put forward a compelling case for reforms that could redefine India’s real estate sector. With the Union Budget 2025 on the horizon, Bothra has called attention to pressing issues that demand immediate action, such as boosting housing affordability, restructuring tax policies, and promoting sustainable development. His perspectives, featured in a CNBC TV18 story, underscore the importance of these reforms in ensuring the sector’s growth and resilience in the years to come.
Affordable Housing: Bridging the Gap
The real estate sector is at a critical juncture where reforms in affordable housing could be transformative, Bothra notes. “As we enter 2025, real estate stands poised for crucial new reforms to drive its growth. A key priority is adjusting the affordable housing price cap beyond the current ₹45 lakh to align with rising development costs in metropolitan areas,” he said.
He pointed out that the existing cap, which has been stagnant for years, no longer reflects the realities of inflation and escalating input costs, particularly in metro cities where housing demand is high. According to Bothra, raising the cap to ₹60 lakh will make affordable housing a more viable option for millions of aspiring homeowners, enabling broader access to quality housing.
Tax Reforms: Supporting Homeownership
Another critical area Bothra highlights is the need to provide tangible financial relief to homebuyers through tax reforms. He advocates increasing the home loan interest deduction limit under Section 24(b) from ₹2 lakh to ₹4 lakh, which would significantly reduce the financial burden on middle-class families. “Another significant expectation is to increase the tax deduction limit on home loan interest from ₹2 lakh to ₹4 lakh, providing tangible relief to aspiring homeowners,” he stated.
Bothra emphasised the potential of Real Estate Investment Trusts (REITs) in attracting new investors and diversifying the investment landscape. “Introducing tax incentives under Section 80C for investments in REITs can promote real estate as an attractive tax-saving avenue, drawing new investors to the sector,” he explained.
Simplifying GST: Enhancing Transparency
The complexity of India’s current GST framework is another concern Bothra raised. Simplifying the GST structure, he believes, is key to making the real estate market more efficient and accessible. “Reduced GST rates will further enhance market vibrancy, creating a more accessible pricing structure,” he said, noting that such reforms could also build trust among stakeholders and ensure smoother transactions.
A Vision for Real Estate
Bothra’s recommendations reflect a forward-looking vision for the real estate sector, grounded in affordability, transparency, and sustainability. He strongly believes that implementing these reforms will drive long-term growth and position real estate as a pivotal contributor to India’s economy. “These measures have the potential to catalyse substantial demand, ensuring a stronger, more sustainable real estate market in the years ahead,” he concluded.
Under Bothra’s leadership, Square Yards continues championing innovative solutions that make real estate accessible and efficient. As the sector prepares for the Union Budget 2025, Bothra’s proposals could act as a roadmap for driving impactful reforms and ensuring the industry’s sustainable future.
Read more through the links below to uncover the key trends and market leaders driving this growth:
cnbctv18 – https://bit.ly/40ySpxY
Published Date: 15 Jan, 2025
