Union Budget 2024: As the countdown to the interim budget begins, real estate leaders are on high alert, dissecting the forecasts that will steer the sector through 2024. Pradeep Aggarwal, the Founder & Chairperson of Signature Global, advocates for a streamlined single-window approval system, industry status recognition, and increased consumer incentives, stressing the essential role of green projects in propelling substantial growth for the real estate sector throughout 2024.

In an exclusive chat with Republic Business, Aggarwal spilt the beans on the challenges, expectations of the 2024 budget, and predictions for the real estate market. He shared his insights on critical issues and outlined a roadmap for sustainable growth.

Real estate riddles: Hurdles and hitches

Signature Global's Chairperson highlighted the multifaceted challenges faced by the real estate sector, ranging from supply chain disruptions and regulatory changes to the imperative of environmental sustainability. "Economic uncertainties, rising interest rates, and the imperative of environmental sustainability further compound the sector's complexities. However, the most pressing issue affecting the sector is the huge delay in getting the various approvals from the government departments, he said."

As the 2024 budget looms, Aggarwal articulated the reforms and policy changes essential for fostering real estate growth. Granting industry status to the sector topped the list, along with the introduction of a Single Window Clearance system to streamline processes and reduce project costs. Aggarwal also advocated for increased incentives for consumers, saying, "Introducing a Single Window Clearance system would further reduce project costs and facilitate seamless integration for successful developments."

Green dreams: 2024 homebuying vibes

Looking ahead, Aggarwal envisaged a shift in homebuyer behaviour in 2024. Post-Covid, there is a discernible preference for larger, high-quality homes within green and sustainable projects. The surge in demand is expected to be particularly pronounced in mid-range and luxury housing, driven by young professionals and nuclear families. Aggarwal predicted an inclination towards mixed-use developments, seamlessly integrating residential and commercial spaces to cater to evolving lifestyle choices. "Homebuyers are now seeking residences in green and sustainable projects, emphasising a desire for a harmonious blend of comfort, lifestyle, technology, greenery, and superior amenities for their families," he said.

Aggarwal outlined his expectations for property investors in 2024. With optimism in the market, he anticipated a renewed interest in mixed-use developments for diversified revenue. Government policies, especially those supporting affordable housing, are expected to influence investor decisions. Aggarwal highlighted the importance of closely monitoring policy changes and aligning investments with sectors benefiting from supportive government measures. In his perspective, "The shift towards mixed-use developments, luxury housing, and a keen focus on government policies will be key factors influencing their decisions and strategies in 2024."

Building tomorrow

In terms of government initiatives, Aggarwal stressed the need for specific measures in the 2024 budget to support the real estate sector. A substantial enhancement in the infrastructure budget, with a focus on developing connectivity options, was deemed crucial. Green developments, incentivised by government initiatives, were highlighted as a priority to align with sustainable practices. He also called for tax sops for homebuyers and increased allocation under the stress fund SWAMIH to complete stalled projects.  "While the Union Budget holds significance, we emphasise the need for reforms in the budgets presented by state governments pertaining to the real estate sector," he added.