The first important event that every Indian looks forward to at the start of every year is the Union Budget. Investing in real estate through the purchase of a home or in any other form has plenty of benefits like that of long term wealth creation, security as well as getting you tax benefits.

Union Budget 2023 will be announced on February 1 by Finance Minister Nirmala Sitharaman.

This year the real estate sector in India is eagerly awaiting the Union Budget, as it is expected to provide a much-needed boost to the industry. The sector has been hit hard by the economic slowdown and the COVID-19 pandemic, and the government's budget is seen as a key opportunity to address some of the challenges facing the industry.

Various reports and experts indicate that for homebuyers, the most anticipated factor in this budget 2023 is the increase in deductions for interest payments and principal amounts on home loans, as rising interest rates will spur demand.

Another key expectation of the real estate sector from the budget is an increase in affordability for home buyers. This could include measures such as tax benefits for first-time home buyers, reductions in stamp duty, and measures to increase the availability of credit. These measures would help to make housing more accessible to a wider range of buyers, and could help to revive demand for housing.

Reports say that experts believe that tax relief on second home and long-term capital gains are needed, as it will make purchasing a second home more affordable. Further tax exemption on rental income will also push homebuyers towards real estate investments.

The budget also expected to provide a push towards the modernization of the Indian real estate sector. It is expected that the government will allocate more funds for the smart cities, green buildings, and affordable housing projects. This will not only increase the standard of living of the people but also help to create more job opportunities.

The real estate sector is also hoping for a reduction in the Goods and Services Tax (GST) on under-construction properties. At present, developers are burdened with an additional tax on under-construction and affordable housing, increasing the cost of properties for buyers. As a result, houses are more expensive since steel and cement are subject to GST at 18% and 28%, respectively.

Furthermore, developers cannot claim tax credits for input items like steel and cement. If the government chooses to restore the Input Tax Credit (ITC) in the upcoming budget, it can reduce this burden and make properties more affordable.

In conclusion, the real estate sector in India is hoping for a budget that addresses the key challenges facing the industry and provides a much-needed boost to the sector. The government's budget is expected to provide a range of measures to increase affordability for home buyers.The budget is also expected to provide a push to the modernization of the Indian real estate sector, to increase the standard of living of the people and creating more job opportunities.