July 25, 2024 |
Budget 2024: Rs 10 Lakh Cr Investment! A Game Changer for India’s Real Estate Market?
Budget 2024 for Real Estate Sector: In the Union Budget 2024-25, the government has allocated a fund of Rs 10 lakh crore under PMAY Urban 2.0 to provide housing to 1 crore urban poor and middle-class families.
The real estate developers have welcomed the massive allocation in the Pradhan Mantri Awas Yojana (PMAY) Urban scheme in the Union Budget 2024-25. The budget 2024 has also shown the forward-thinking approach of India’s property market. Under the PM Awas Yojana, the government has decided to provide three crore additional houses in both rural and urban areas in the country.
“Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next 5 years,” FM Sitharaman said.
Several announcements such as — reduction in stamp duties, and initiatives such as rental housing, etc. will boost the sector further. Commenting on the development, Pradeep Aggarwal, Founder & Chairman, of Signature Global (India) Ltd, said that the budget underscores a robust vision for urban development and will help homebuyers would save significant amounts, making homeownership more accessible. “At macro level sustained infrastructure impetus, reflected in the Rs 11.11 lakh crore Capex allocation, we anticipate all these would create a multiplier impact and significant boost in the overall housing sector,” Aggarwal said.
Sanjeev Kumar Sharma, CFO – M3M India said that the budget 2024 supports steady expansion, allowing companies to innovate and produce top-notch housing developments. “The Real Estate sector is focusing on aligning with the government’s initiatives and demonstrating a commitment to addressing the evolving needs of homebuyers. We are hopeful for what’s to come and are ready to make a significant impact on the industry, in line with the government’s goals,” Sharma added.
Yashank Wason, Managing Director, Royal Green Realty exemplifies the government’s push towards infrastructure development. Over the construction of Plug and Play Industrial Parks across 100 Indian cities and 12 Industrial Parks under the Industrial Corridor Scheme, Wason said that the company will play an important role in building the future of a brighter India. He also added that Royal Green Realty will develop an industrial park in Haryana.
Manish Jaiswal, Group COO of Eldeco Group has called the reduction in stamp duties, a noteworthy step towards making property more accessible, particularly for women, which is expected to boost home ownership and invigorate real estate transactions. “The recent budget unveils a forward-thinking approach that promises substantial growth for the real estate sector,” he said.
Mohit Malhotra, Founder & CEO, NeoLiv said that the ambitious target of housing for 1 crore families over five years, represents a substantial scale-up from the current scheme. “This initiative is expected to generate increased demand for construction materials, potentially revitalizing sectors such as cement, steel, and home appliances. Overall, this budget sets a strong foundation for sustainable development in real estate and shows the government wants India to keep progressing and including everyone,” he said.
Sandeep Agarwal, CFO, Elan Group has applauded the government’s initiative to encourage states to moderate stamp duty rates, which can rejuvenate property transactions nationwide. “We applaud the government’s initiative to encourage states to moderate stamp duty rates, which can rejuvenate property transactions nationwide. Moreover, the proposal for reduced duties on properties purchased by women is a progressive step towards promoting diversity in home ownership. These measures complement the robust growth observed in 2023, where housing sales in major cities surged to an unprecedented 4.77 lakh units,” he said.
Samir Jasuja, Founder and CEO of PropEquity has termed that the government’s focus on job creation, skilling, and employment-linked incentives will give a boost to the real estate sector. “The call to State Governments to reduce Stamp Duty and initiate land-related reforms that include urban planning, usage, building bylaws, and GIS mapping of land records are steps in the right direction that will not just help the sector but also be a strong growth propeller for the Indian economy,” he added.
Mayank Ruia, Founder and CEO of MAIA Estates said that the government’s focus on the reduction in stamp duties will further promote sustainable projects and increase female home ownership. “The decision to lower the tax rate on long-term assets, including real estate properties such as land and buildings, from 20% to 12.5% is a commendable step forward, notwithstanding the withdrawal of indexation benefit. We are optimistic that these measures will drive growth and innovation in the real estate sector,” Ruia added.
Amarjit Singh Bakshi, Chairman and Managing Director, of Central Park has commended the government for the comprehensive and progressive budget. He said that the Union Budget will benefit the urban middle class at large and will also address the nation’s affordable housing needs. “We believe this budget sets the stage for a robust and sustainable growth trajectory for the real estate sector, benefiting all stakeholders. We remain committed to utilizing these favorable policies to deliver exceptional value and innovative solutions to our customers,” he added.
Nagaraju Routhu, CEO of Experion Developers calls it (Union Budget) a big step forward for the development of urban infrastructure in the country. He said that the government’s emphasis on affordable housing and the extension of tax incentives under Section 80EEA will give first-time homebuyers much-needed relief.
“It is a good measure that will increase sales of residential projects and draw in more investment to lower the GST rates for properties that are still under construction. All things considered, this budget represents a promising start for the real estate industry, and we anticipate its successful execution to bring about long-term growth and development,” Routhu said.
Sandeep Runwal, Managing Director, Runwal said that the government’s commitment to economically disadvantaged urban residents and the middle class is evident in the substantial investment of Rs 10 lakh crore in urban housing under PMAY – Urban 2.0. “The proposed stamp-duty reduction, including lower rates for female buyers and the digitization of property data, will enhance accessibility and attract potential buyers,” he said.
Darshan Govindaraju, Director at Vaishnavi Group said that the budget will greatly spur demand for developers and partners across the country. He added that the initiatives will help accelerate in ensuring housing for all while boosting investments in the sector. “Reforms in land planning and management, proposed reduction in stamp duty for property purchased by women, and brown field redevelopment of existing cities will create significant demand for real estate services across the board,” he added.
Viineet Chellani, CEO-Founder of Asset Deals said that an interest subsidy to support loans for affordable housing will open up more opportunities for home ownership. “To improve availability and guarantee fair practices, policies, and regulations will also be put in place to promote a transparent and efficient rental housing market. One noteworthy aspect is the development of industrial workers’ rented housing with dorm-style amenities. A Public-Private Partnership (PPP) model will be used to accomplish this, with pledges from anchor industries and help from Viability Gap Funding (VGF). These initiatives are meant to support the industrial workforce and give workers improved living conditions,” he said.
Amit Goenka, MD-CEO at Nisus Finance has called the budget a big infrastructure push that will further drive up prices of land in tier 2 and tier 3 markets. “GIS mapping of land and incentives for the hospitality industry connected to tourism will also benefit the real estate developers involved with hotels,” he added.
Ashish Narain Agarwal, Founder & CEO, PropertyPistol said that the Interest Subsidy Scheme for affordable urban housing loans and plans to reduce stamp duty for women buyers can sustain growth in the realty sector. “Overall, the budget presents a positive picture of India’s economic growth and a favorable outlook for the future,” he added.
Navdeep Sardana, Founder & Chairman of Whiteland Corporation, said the budget adopts a positive approach to long-term capital gains tax. “Reduced capital gains tax rates for properties held for more than two years will make real estate investments more attractive, likely fostering longer-term investment and driving further market activity and stability,” Sardana added.
Ravi Ramesh Pilani, MD at Pilani Realty has termed the Union Budget 2024-25 as a significant step towards realizing the goal of a “Vikshit Bharat” by 2047. “The additional PMAY allocations, rationalization of stamp duty for women homebuyers, and focus on rental housing for industrial workers will benefit the residential market. Furthermore, the development of industrial parks and corridors is set to energize the industrial and warehousing sectors,” he added.
Source : Et Now News
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