Infrastructure and realty industry players welcome Govt focus on infrastructure and real estate.
Union Minister for Road Transport and Highways Nitin Gadkari hailed the budget as pioneering a prosperous future with advanced infrastructure, innovation, and next-generation reforms, developing every section of the society.
In a social media post Gadkari expressed his heartfelt thanks and congratulations to the Prime Minister Narendra Modi and Finance Minister Smt. Nirmala Sitharaman for unveiling a visionary budget. He said this dynamic blueprint promises to boost productivity in agriculture, enhance employment and skilling, and elevate human resources and social justice.
Gadkari said it drives progress in manufacturing and services, urban development, and energy security. With a strong focus on infrastructure, innovation, research, and next-generation reforms, this budget sets the stage for India’s significant advancement across all sectors ,he added.
Gadkari said a brighter, more prosperous future awaits us all. He said this forward-thinking budget fosters sustainable growth, innovation, and enduring progress, ensuring a resilient and prosperous future for India under the visionary leadership of Prime Minister.
Here are some comments rom the infrastructure and housing sectors:
Vikas Garg, Joint Managing Director, Ganga Realty: We welcome Budget 2024 wholeheartedly as it introduced PMAY Urban Housing 2.0 with a budget allocation of Rs 10 lakh crore. It will help the lower strata of society residing in slums and ghettos to get a permanent roof over their heads. The central government will incentivize housing projects with financial aid of close to ₹2 lakh crore which will be given to the needy people at subsidized rates. Furthermore, Rental housing was also the cynosure of the Budget which will be built on PPP mode for the amelioration of industrial workers. Moreover, the Budget proclamations raise hopes and aspirations for a bright future ahead in terms of both infrastructure and housing.
Neeraj K Mishra, Executive Director, Ganga Realty: As one of the largest employment-generating sectors in India, a renewed focus on employment creation in the Union Budget 2024 is noteworthy and will attract upskilled talent in real estate too. It also recognizes infrastructural development as one of the critical growth propellers and promote state-level infrastructural developments to attract key investments in different parts of the country. With the promulgation of PMAY Urban Housing 2.0 and the earmarking of 10 lakh crore for the programme, the government once again prioritizes its core agenda of achieving Housing for All in Budget 2024. Providing homes at subsidized rates will be instrumental in alleviating thousands of people from a life of poverty and destitution and imbuing their lives with one of the qualitative facilities, which is also a crucial marker of judging the quality of life- housing. While allocating fresh budgets for emboldening housing has become a commonality in Budget announcements, the focus on rental housing for industrial workers, which will be taken up in a PPP mode, comes off as a good surprise and a refreshing step towards promoting diverse forms of housing.
Saransh Trehan, Managing Director, Trehan Group: In the Budget 20024, the status quo on Infrastructure spending was maintained and comprises ₹11.1 trillion which equals 3.4% of GDP. The essentiality for Housing for All becomes the mainstay for Budget 2024 yet again as the announcement of PMAY Urban Housing 2.0 becomes one of the salient attractions. Under the scheme, the government offers to provide homes at subsidized rates and allocates Rs 10 lakh crore for the initiative. The introduction of Rental housing to be built on PPP mode and upsizing of retail infrastructure will be crucial in empowering the real estate sector and housing segments and promoting all forms of property developments in the metro as well as Tier 2 and 3 cities.
Dushyant Singh, Director, Orion One 32: The Union Budget 2024 offers some promising roads to development, urbanization, and infrastructural developments. The announcement of Urban Housing 2.0 with a budget allocation of ₹10 lakh crore will secure the lives of thousands of people struggling to make two ends meet and living in makeshift homes in urban cities and towns. The availability of homes at subsidized rates will incentivize them to invest in properties. On the other hand, the government’s focus on rental housing expected to be built on PPP mode is also approbation-worthy and designed to improve living conditions for industrial workers.
Shiven Vikram Bhatia, Executive Director, Splendor Group: The Budget 2024 betokens a pivotal moment in India’s housing, infrastructure, and real estate sector. The introduction of PMAY Urban Housing 2.0 with an allocation of ₹10 lakh crore underscores the government’s unwavering commitment to achieving Housing for All. This substantial investment will not only provide subsidized housing to those in need, uplifting thousands from poverty and enhancing their quality of life, but also stimulate economic activity across the real estate market. Moreover, the Budget’s focus on infrastructure development, with strategic investments in roads, railways, and urban amenities, is set to drive robust growth in the real estate sector. The commitment to improving connectivity and urban infrastructure will undoubtedly attract more investment, enhance property values, and improve the living standards of millions. However, a contemplation on rebates on cement rates would have been appreciated, in its entirety, the Union Budget holds doors to enhanced development, growth, and infrastructural progress.”
Bhavesh Shah, Joint Managing Director, Today Global Developers
“In the Budget 2024-25, the move to moderate stamp duty charges and lower stamp duties for women home buyers is a commendable step towards empowering women to invest in real estate and support their home-buying aspirations. However, the real estate sector had also hoped for measures such as reduced material costs, subsidies, and other benefits to further boost growth. Bringing back the interest subsidy under the Credit Linked Subsidy Scheme is a positive step. With home loan rates going up, this subsidy will give much-needed push for affordable housing segment. The PMAY Awas Yojana Urban 2.0 initiative is a positive development that will undoubtedly uplift and support housing for the LIG and MIG categories.”
Jash Panchamia, Management, Suraksha Group:
Reintroducing the interest subsidy under the Credit Linked Subsidy Scheme is a welcome move, especially after its discontinuation in
2022. With rising home loan rates, this subsidy will provide much-needed relief for home buyers in the affordable category.
Anuj Goradia, Director- Dosti Realty.
The FM’s announcement of ₹10 lakh crore investment in urban housing under PM AWAS Yojana Urban 2.0 will give significant boost to affordable housing sector and will have multiplier effect on allied industries. A welcome move to reduce Stamp duty for women homebuyers and integrating these concessions to Urban Development. Also we would see the enhanced domestic savings due to change in IT slabs for the salaried class”
Parth Mehta, CMD- Paradigm Realty
“The recent budget overlooks the real estate sector, despite its potential for growth. Expected measures such as reduced material costs, subsidies, and tax reductions for homebuyers were absent. The appeal to states to reduce stamp duty for women homebuyers offers a small boost, but broader support is needed. The reintroduced Credit Linked Subsidy Scheme provides some relief for affordable homebuyers amid rising loan rates, but it’s not enough. Additionally, the 12.5% flat LTCG tax on property sales without indexation benefits is a setback for investors. The removal of benefits which previously allowed investors to account for inflation in their capital gains calculations, reduces potential returns and may deter investment in real estate. Comprehensive measures are required to support the sector and facilitate homeownership for all.”
Harsh Parikh, Partner at Khaitan & Co: Government’s plan to implement a policy for rental housing market, is a big step to streamline residential renting market and can open doors to many large real estate players including foreign investors to establish large residential complexes and ensure smooth renting. Guidance to all States to rationalize stamp duty and to give more benefit for women buyers is also a huge welcome step”.
Padma Priya, Partner, Grant Thornton Bharat: “Redeveloping cities through a well-developed framework of enabling policies, market mechanisms, and regulations is expected to boost both urban and peri-urban areas. This approach will integrate peri-urban areas smoothly into the urban landscape.”
Shabala Shinde, Partner, Grant Thornton Bharat: “The recent budget announcements regarding rental housing are set to greatly enhance the real estate market, particularly benefiting SM REITs. This strategic emphasis will stabilise rental yields and position REITs as pivotal drivers in the growth of the residential real estate sector, fostering a more robust and dynamic market.”
Sidharth Pansari, Director of Primarc Group & President of Credai Bengal: The Union Budget 2024-2025 reaffirms our commitment to urban development, emphasizing affordable housing with the announcement of three crore additional houses under the PM Awas Yojana. This move is set to bolster the real estate market significantly, driving demand and enhancing infrastructure development. Additionally, the reduction of stamp duty, especially for women property owners, will encourage more investments in real estate. Our focus on improving urban infrastructure and housing facilities will ensure a steady growth trajectory for the real estate sector, promoting economic resilience and sustainable urbanization.”
Kavita Shirvaikar, Acting Managing Director, Patel Engineering Limited: The Union Budget’s emphasis on infrastructure development marks a significant leap toward our nation’s future. The substantial allocation for capital expenditure and long-term interest-free loans to states reflects a forward-thinking strategy aimed at stimulating economic growth and innovation. Encouraging private sector participation through viability gap funding and market-based financing frameworks will foster a dynamic environment for infrastructure advancements. These initiatives are poised to significantly improve connectivity, boost productivity, and create numerous job opportunities across various sectors. By prioritizing sustainable development and leveraging both public and private investments, this budget positions India on a robust path to becoming a global leader in infrastructure excellence.
Jagannarayan Padmanabhan, Senior Director & Global Head, Transport, Mobility and Logistics, Consulting, CRISIL Market Intelligence and Analytics: Targeted interventions and making the states a focal point for Infra development is one of the key themes. Increased focus on Cities and their all-round development has taken centerstage. Development of Industrial parks, cities as growth hubs, transit oriented development scheme, brownfield development of cities water and sanitation are some of the key announcements in this regard. The allocation to infrastructure ministries has been maintained as in the interim budget. Expending the allocated budgets will be key for this year.
Aravind Maiya, Chief Executive Officer of Embassy REIT: We welcome today’s budget announcement, a significant boost for Indian REITs. Reducing the holding period for long-term capital gains from 36 to 12 months puts us at par with listed equity shares, further popularizing the REIT asset class in India. Over the past five years, REITs have transformed the Indian real estate landscape, attracting around 2.3 lakh investors. The four listed REITs today have over ₹1.4 lakh crore in assets under management and have distributed over ₹17,000 crores. This move will further enhance the attractiveness of the REIT product, increasing investor participation.
Kapil Raizada, Co-founder, IntrCity SmartBus: We are excited about the continued budgetary focus on road & travel infrastructure, which further opens huge potential to serve new regions and improve shared bus transport experience for inter-city travelers.
A large allocation of Rs 11.11 lakh crore for capital expenditure is aimed at enhancing road infrastructure and will significantly improve the efficiency and reach of inter-city bus transportation networks.
With a planned investment of Rs 26,000 crore in road projects across Bihar, including the development of new expressways, we see a significant opportunity for expansion. This infrastructure growth is set to enhance connectivity and journey experiences for travelers, providing them with more route options.
Furthermore, the ‘Purvodaya’ initiative targeting eastern states presents a golden opportunity for the bus transportation sector. As these regions become more connected and economically active, we anticipate a surge in demand for reliable inter-city bus services.
These developments align with our commitment to providing reliable and comfortable long-distance bus services. Overall, these infrastructure investments will enable bus services to play a crucial role in India’s economic growth, providing efficient, comfortable, and affordable transportation options for both regular travelers and tourists alike.
Shashank Paranjape (Managing Director, Paranjape Schemes Construction (Ltd ):“If the proposed measures such as reduction in stamp duty for first time homebuyers and women buyers are implemented then it will provide a much-needed boost to the real estate market”.
Sanjay Kumar, MD & CEO, Rassense Pvt. Ltd: The Union Budget 2024 highlights the government’s unwavering commitment to improving India’s agricultural landscape. With a massive allocation of Rs 1.52 lakh crores, this budget is projected to significantly increase productivity and promote climate-resilient varieties through advanced agricultural research. The emphasis on FPO-based cooperatives is a strategic move that will empower farmers, promote collective growth, and safeguard the sector’s long-term stability. This holistic strategy not only addresses farmers’ immediate needs but also establishes the foundation for long-term agricultural profitability and resilience. The initiative to release 109 high-yielding, climate-resilient crop varieties can improve agricultural productivity and sustainable practices and it will ensure a consistent supply of high-quality goods, which is crucial for upholding food standards. Empowering 1 crore farmers with natural farming techniques under the Union Budget 2024 is a game-changer too. Supported by certification and branding, this initiative has the potential to transform farming practices and contribute to a more sustainable and resilient food system. Also, if we look into the manufacturing sector, a special attention provides credit guarantee schemes for MSMEs and formulated packages to finance technology support.
