While Modi’s victory has fueled a zillion aspirations, the real fight of putting the nation back to growth remains. As the country looks forward to the budget in the 2nd Quarter of FY 2014 – 2015, there is a large list of reforms that the real estate industry will want of this government, more so as this time the government can’t use the ‘coalition pressure’ excuse. For real estate (largely a state subject) a strong central leadership can fuel demand by facilitating decisions which in turn can attract investment and put more money in people’s pockets. It can incent the state government and increase performance pressure so as to focus on the development of infrastructure, better urban management, etc., however, these are all indirect measures. The main culprit for the real estate industry and in way of providing affordable housing has been the high taxation in the real estate industry. According to CREDAI, as much as 40% of the cost of production goes away in taxes alone. The Center can do a lot in this regard. One long-standing demand of the industry has been to provide a 100% waiver of income tax for purchase of 1st home by any individual. This will give a tremendous boost to the housing and real estate sector. Imagine if this were to be implemented, even without a change in the price of houses, for an end user the houses will become cheaper by 30% (those in higher tax slabs). Retrograde service tax on commercial leasing must go away as we are among 15 nations that levy a service tax on commercial rent. REITs legislation must be notified soon. Also the AIF – II (minimum) investment limit of ₹ 1.0 Cr. per individual/entry must be brought down to 25 lacs or below. These measures will not only boost investment in real estate but also benefit 278 downstream industries.