GST Reduction and Tax Rationalization Crucial for Boosting Affordable Housing Demand: CBRE

Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, emphasized the importance of reducing Goods and Services Tax (GST) and rationalizing taxes to enhance demand for affordable housing.

Magazine stressed the need for fiscal stimulus to bolster the economy, which has demonstrated promising growth with a 7.8 percent increase in Q4 and 8.2 percent in FY24. “The economy is in good shape, but the main expectation from the budget is always on taxes,” he remarked, underscoring the potential for both direct and indirect tax reductions to foster investment.

Regarding GST, Magazine highlighted that lowering rates, especially in the real estate and construction sectors, could significantly boost affordable housing. “If the government wants to encourage affordable housing or commercial real estate, GST rates must come down for inputs like cement and steel,” he explained.

Speaking at an event in New Delhi, Magazine also shared his insights on the real estate sector’s transformation over the past decade. During the event, Stefano Pelle, an author, teacher, and travel enthusiast, launched his book ‘Going Places’, which combines engaging travel stories with contributions from top business leaders. The book was unveiled in the presence of prominent personalities, including Member of Parliament Dr. Shashi Tharoor, Yashovardhan Azad, and Anshuman Magazine.

Reflecting on the real estate sector’s changes over the last ten years, Magazine identified two key factors: the introduction of RERA, which has regulated the industry, and the influx of institutional money into real estate. “These have been major triggers for change,” he noted.

The upcoming budget, expected to be presented in mid-July, is highly anticipated by various sectors, including real estate, to provide the necessary fiscal measures to sustain and accelerate growth.

Commenting on CBRE’s latest report, which showed a 17 percent increase in office space leasing by foreign firms for setting up Global Capability Centres (GCCs) last fiscal year, Magazine attributed this growth to India’s strategic emphasis on digital technology and competitive costs for talent and rentals.