Real estate sector in recent years has faced significant stagnation, with those working in the industry feeling increasingly pessimistic about its future. However, the government’s newly proposed relief package offers hope for revitalising and addressing some of its most pressing challenges.
The recommendations put forward in this package are potentially transformative. Notably, the package suggests slashing the property transaction tax from 4% to 2%, and reducing the buyer’s tax from 4% to 0.5%. These tax cuts would significantly reduce the financial barriers that often deter peo-ple from entering the real estate market. Additionally, the complete tax exemptions for first-time homebuyers offer a much-needed opportunity for those trying to secure their first home, an ambition that has become increasingly difficult for many families. Beyond tax relief, the proposal includes offer-ing loans for home construction, with repayment periods stretching from 5 to 20 years, which would provide a lifeline for those looking to build their own homes but lacking necessary capital. These measures are undoubtedly positive steps forward in making homeownership more accessible and af-fordable, especially for those in lower-income brackets.
The importance of real estate sector in a nation’s economy cannot be overstated. It has a ripple ef-fect that extends far beyond the construction of homes. When people start buying and building homes, it drives demand across numerous related industries — from construction materials to interior furnish-ings and skilled people required to carry out the work. This surge in economic activity will undoubt-edly generate much-needed jobs, thus stimulating broader economic growth. However, while moving forward, there must be careful consideration of how to ensure benefits reach the right people.
Prices of housing units or plots must not soar beyond the reach of common man, particularly as demand in-creases. In addition, a regulatory framework must be put in place to prevent unregulated spread of housing societies, which can lead to overcrowded urban sprawl and an imbalance in land use. The fo-cus should shift from horizontal construction to vertical building projects that will preserve precious agricultural land and foster more sustainable urban growth. In a country with rapidly growing urban populations, the need for high-rise buildings has never been greater.
