Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, underscoring the Modi govt 3.0’s dedication to holistic economic growth. The budget introduces a suite of transformative measures aimed at boosting affordable housing, infrastructure development, and urban planning. These initiatives are expected to provide a significant impetus to the real estate industry, reinforcing its role as a cornerstone of the nation’s economic development. Industry experts have shared their views on the budget’s overall impact on the sector.
Mr. Prashant Sharma, President, NAREDCO Maharashtra
“We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. The Finance Minister’s announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of Rs 2 lakh crore, and a significant provision of Rs 1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties.
The government’s commitment to making housing more affordable, with a Rs 2.2 lakh crore push under the PM Awas Yojana-Urban, is a significant step forward. Addressing the housing needs of one crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years, reflects a robust and inclusive approach to urban development.
The proposal to encourage states to moderate high stamp duty rates and consider further reductions for properties purchased by women is a progressive measure. Incorporating these as essential components of urban development schemes will promote greater inclusivity and accessibility in the housing market.
The GST reforms, which have eased compliance and reduced tax burdens, have been instrumental in driving economic growth. The proposed rationalization of the tax structure, coupled with the new tax regime changes, including the increased standard deduction, will further benefit the salaried class and boost disposable income, positively impacting housing demand.
The sanctioning of 12 industrial parks under the National Industrial Corridor Development Programme, the facilitation of rental housing with dormitory-type accommodation for industrial workers in PPP mode, and the formulation of transit-oriented development programmes for 14 large cities are strategic moves that will enhance urban infrastructure and support industrial growth.
With significant infrastructure investments continuing over the next five years, including a provision of ₹11,11,111 crore for capex, we anticipate a multiplier effect that will drive private investment in infrastructure. The introduction of a market-based financing framework and simplified rules for Foreign Direct Investments will further facilitate economic growth and stability.
Overall, the Union Budget 2024-25 is a forward-looking and balanced approach towards Viksit Bharat that addresses key areas of employment, housing, urban development, and economic growth. We at NAREDCO Maharashtra look forward to the positive impact these measures will have on the real estate sector and the overall economy.”
Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI
“We wholeheartedly welcome the Finance Minister Nirmala Sitharaman Union budget 2024-25 which reflects market expectations, promoting an atmosphere conducive to economic growth.
The budget emphasizes the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government’s primary priorities, and we applaud the government for the same. Keeping Viksit Bharat in mind, the Finance Minister mentioned urban development and infrastructure among some of the key focus areas of the government.
An outlay of 10 lac crore for urban housing under PM Awaas Yojana is a welcome move as it will give a significant boost in providing housing across major cities in the country. With a huge shift in the population moving from rural to urban areas, this move will immensely benefit in providing a roof over the head of our urban population.
The government has announced a Rs 2.2 lakh crore initiative to enhance housing affordability: Through the PM Awas Yojana-Urban, the housing requirements of one crore economically disadvantaged and middle-class families will be met, supported by an investment of ₹10 lakh crore. This comprehensive plan includes ₹2.2 lakh crore in central assistance over the next five years.
The 2.66 lac crore allocation for rural development and infrastructure will benefit people in rural India to become self reliant and uplift their living standards. This will discourage them from moving into urban areas and encourage overall development of the country.
Rental housing with dormitory type accommodation for industrial workers has been proposed under the PPP model. This is a step in the right direction, as it will provide affordable housing options for the industrial workers, who are at the bottom of the housing pyramid.
The Finance Minister stated that stamp duty for women buying a house has been lowered. This will encourage women to come forward and empower them in the home buying process.
The Finance Minister highlighted ongoing significant infrastructure investments, set to continue over the next five years. This year, ₹11,11,111 crore has been allocated for capital expenditure, amounting to 3.4% of GDP. States will be encouraged to match this scale of support based on their priorities. Private investment in infrastructure will be encouraged through Viability Gap Funding and a new market-based financing framework.
The Union Budget 2024-25 embodies a progressive strategy aimed at addressing crucial sectors while propelling the nation towards a more sustainable and promising future.”
Mr. Vedanshu Kedia, Director, Prescon Group
“We are pleased with Finance Minister Nirmala Sitharaman’s budget for 2024-25, which addresses the aspirations and needs of both urban and rural India. Key focuses include urban development and infrastructure under Viksit Bharat.
The budget includes a reduction in stamp duty for women buying houses to encourage their participation in property ownership. States with high stamp duty rates have been encouraged to moderate them, with further reductions considered for properties bought by women.
The increase of LTCG (Long-Term Capital Gains) for equities will have a spillover effect as money will now start chasing property investments that provide more stable returns.
The provision for central government assistance to state governments who are focusing on infrastructure development will bore well for the real estate industry.
Overall, this budget meets industry expectations – as an industry, we are looking forward to the comprehensive income tax reform – a lower tax rate and improved concessions will have a direct impact and multiplier effect on the property industry.”
Mr. Rohan Khatau, Director, CCI Projects Private Limited
“This was a good budget for the real estate sector presented by the Finance Minister Nirmala Sitharaman which echoed the sentiments of the industry and home buyers.
The government’s 2.2 lakh crore initiative under the PM Awas Yojana-Urban, aims to enhance housing affordability for one crore families, reflecting a sincere commitment to inclusive urban growth over the next five years.
The FM mentioned urban development and infrastructure among some of the key focus areas of the government under Viksit Bharat. Infrastructure development holds the key to growth for the housing sector as it enhances connectivity, improves ease of travel and brings all convenience within close proximity to your home.
The lowering of stamp duty for women buying a house is a welcome step. It will persuade more and more women to buy their desired home which in turn will boost home sales.
This has been a good budget overall and we hope to see sustainable development with inclusive growth among all stakeholders of the economy.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“The Union Budget 2024-25 announced by Finance Minister Nirmala Sitharaman is a promising step towards holistic development, with a keen focus on employment, skilling, and infrastructure, which are crucial for the real estate sector.
The emphasis on women-led development, with an allocation of more than Rs 3 lakh crore for schemes benefiting women and girls, reflects a progressive vision for inclusive growth. The encouragement for states to moderate high stamp duty rates and the proposed reductions for properties purchased by women are commendable. These measures will not only make property transactions more affordable but also promote gender inclusivity in property ownership.
The continuous efforts to streamline GST and the proposed increase in the standard deduction to Rs 75,000 from Rs 50,000 are welcome changes. These will provide much-needed relief to the salaried class, increasing their disposable income and, consequently, their ability to invest in real estate.
The substantial infrastructure investments will have a multiplier effect, stimulating economic activity and catalyzing further growth in infrastructure, which is pivotal for real estate development.
Lastly, the simplification of rules and recognition for Foreign Direct Investments (FDIs) and the emphasis on promoting the use of the Rupee for overseas investments are strategic moves. These will enhance the inflow of foreign investments, including from NRIs, bolstering the real estate sector and contributing to its growth.
Overall, the Union Budget 2024-25 lays down a comprehensive roadmap for sustainable development, economic growth, and a vibrant real estate market.”
Mr. Samyak Jain, Director, Siddha Group
“The government’s interest subsidy scheme for urban housing is a positive step towards making home ownership more accessible.
The PM Awaas Yojana for one crore poor and middle-class families with central assistance of 5 years will not only push the real estate market but also stimulate all other industries which are indirectly co-related with the real estate market.
The proposal of lowering of stamp duty rates for women will inspire women to buy a home and will effectively give a social security to them.
The proposal to provide rental housing for industrial workers through the PPP model will involve the industrial houses who will share the burden of cost with the government to provide housing to industrial workers, thereby providing a good housing atmosphere and enabling the children of the workers for a better life.”
Mr. Himanshu Jain, VP – Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)
“The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, reflects the Modi government’s focus on youth and its commitment to job creation and boosting consumption, which are positive developments for the real estate sector. The significant push of ₹2.2 lakh crore under the PM Awas Yojana-Urban to make housing more affordable is a commendable initiative that will cater to the housing needs of one crore poor and middle-class families. This substantial investment of ₹10 lakh crore over the next five years is expected to stimulate demand and drive growth in the real estate market.
The introduction of measures to moderate high stamp duties by states, along with potential reductions in duties for properties purchased by women, are essential components of urban development schemes that will further incentivize homeownership. These steps are aligned with our goal of making housing accessible and affordable for all. Additionally, the increase in the standard deduction to ₹75,000 for salaried employees will provide financial relief and enhance disposable incomes, thereby increasing purchasing power and driving consumption in the real estate sector.
The significant infrastructure investments and the encouragement for states to support infrastructure development will ensure sustained growth and development in the real estate sector. Overall, the budget is a balanced and forward-looking approach that will have a positive impact on the real estate industry.”