But builders shower praise on FM Nirmala Sitharaman
Rental housing with dormitory type accommodation for industrial workers is a step in the right direction, say realtors. Here are some comments:
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.
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.
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.
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.
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.“
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.
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.
Aayushman 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-Urban aims to meet the housing needs of one crore poor and middle-class families through an investment of Rs 10 lakh crore, including Rs 2.2 lakh crore in central assistance over five years. This initiative will boost the real estate market and stimulate demand for affordable housing.
The central government will be proposing a lowering of stamp duty rates especially for women owners, this is a great initiative for the Real estate market.
Additionally, the proposal to provide rental housing for industrial workers through PPP mode with Viability Gap Funding support is a strategic move. It addresses the housing needs of industrial workers and encourages private sector participation.
Overall, these budget measures will foster growth in the real estate sector, promote inclusivity, and ensure housing for all.
Sahil Saharia, CEO, Bengal Shristi Infrastructure Development Ltd: The government’s new interest subsidy scheme and additional funding for affordable housing mark a substantial move towards tackling urban housing issues. The ₹10 lakh crore investment under PM Awas Yojana-Urban, set to aid one crore families, alongside the ₹2.2 lakh crore central assistance over the next five years, is a commendable effort. Furthermore, promoting rental housing for industrial workers via PPP mode with Viability Gap Funding support will enhance housing accessibility and affordability.
Kalyan Chakrabarti, CEO, Emaar India: We at Emaar India welcome the Union Budget 2024-2025, as it reflects the government’s strong commitment to improving urban housing. This budget lays a robust foundation for a dynamic, inclusive, and sustainable urban housing environment, ensuring long-term benefits for all stakeholders We are excited about these positive changes and are committed to playing our part in building high-quality projects that support this vision.”
This ₹10 lakh crore investment is a strong step towards creating an inclusive and sustainable urban ecosystem. Making affordable loans more accessible will effectively help people in achieving the dream of homeownership. At Emaar, transparency is our core value and therefore we firmly support the emphasis on transparency and believe that a fair rental housing system will create a more trustworthy and balanced housing market.
Key infrastructure developments, such as better water supply and sanitation, effective sewage treatment, and solid waste management, will significantly enhance the quality of life across the country. Additionally, lowering of stamp duty for properties purchased by women is a commendable move towards gender equality in property ownership and empowering women. Furthermore, the comprehensive internship program for one crore youth in leading companies, along with women-specific skilling programs, are strategic initiatives designed to boost workforce participation and drive economic growth.
Sammeer Pakvasa, Managing director and CEO- Eleganz Interiors: The 2024 Union Budget brings promising developments that align with our commitment to excellence at Eleganz Interiors. The allocation of Rs 50,000 crore towards infrastructure development is particularly exciting for us, as it will significantly enhance opportunities for design and fit-out projects. Initiated in 1988, Eleganz Interiors has consistently aimed to set the benchmark in the commercial interior design and fit-outs. With Sammeer Pakvasa’s leadership since 1999, we have been at the forefront of transforming spaces in India and Singapore. The increased focus on infrastructure and urban development will not only bolster our industry but also enable us to leverage new opportunities for creativity and innovation. We look forward to contributing to and benefiting from the heightened investment in our sector, which will undoubtedly support our mission of delivering unparalleled design solutions and exceptional value to our clients.
Ashwin Sheth, Chairman and Managing Director, Ashwin Sheth Group: The Union Budget 2024 marks a momentous breakthrough for urban development and housing reassuring a promising future for the real estate sector. The comprehensive focus on efficient urban planning, including transit-oriented development and enhanced infrastructure for water supply, sewage, and waste management across 100 large cities, will elevate the quality of urban living. The substantial Rs. 26,000 crore investment in road connectivity projects is set to create a new growth corridor, significantly boosting real estate demand in emerging regions. We applaud the government’s progressive initiative to urge states to moderate stamp duty rates and offer further reductions for properties purchased by women. Coupled with the proposed interest subsidy scheme for urban housing loans, this will revolutionize homeownership by making it more accessible. Furthermore, the commitment to developing a transparent and efficient rental housing market is a commendable stride that will benefit both property owners and tenants. As a leading real estate developer, we recognize these measures as transformative catalysts. The Indian real estate sector, poised to reach $1.04 trillion by 2029 and contribute 13 percent to the GDP by 2025, stands to benefit immensely from this holistic and forward-thinking approach to urban development and housing.
Deep Vadodaria – CEO of NILA Spaces Limited: We commend the Honourable Finance Minister, Nirmala Sitharaman, for the robust allocation of ₹2.2 lakh crore towards PM-Awas Yojana Urban 2.0. This significant commitment reflects the government’s dedication to addressing the housing needs of the poor and middle class. The completion of 3 crore houses across rural and urban areas will greatly enhance the ‘Ease of Living’ and dignity for millions of Indians.
The reintroduction of interest subsidies under PMAY-U is a positive step that will support the affordable housing segment, making homeownership more accessible to many. Additionally, the Finance Minister’s encouragement for states to lower stamp duties for women homeowners is a progressive move that will significantly reduce property acquisition costs, fostering greater female participation in property ownership and promoting gender equality in real estate.
These initiatives, combined with the ₹1.48 lakh crore outlay dedicated to employment generation, will stimulate the construction industry, create millions of jobs, and ensure inclusive urban development. The planned regulatory framework for rental housing and the creation of dormitory-style rental housing for industrial workers mark the beginnings of a much-needed rental housing market in the country.
The digitization of land records with GIS mapping and the establishment of an IT-based system for property records and tax administration will improve the financial position of urban local bodies, contributing to more efficient urban management.
Furthermore, the government’s balanced approach, including the raise in both short-term and long-term capital gains, underscores a commitment to fiscal responsibility and sustainable economic growth. At this stage, raising taxes is a prudent move to ensure financial stability and support these ambitious development plans.
Ashok Chhajer, Chairman and MD of Arihant Superstructures: The latest budget represents a significant change for the real estate sector, with a focus on affordable housing and improved accessibility. Key measures, such as increased provisions for homeownership and reduced stamp duties for women, are expected to have a substantial impact. These initiatives aim to address the housing needs of a wider demographic and create a more supportive environment for real estate development. The emphasis on affordable housing and reduced barriers for homebuyers is anticipated to stimulate the market and align with broader objectives of inclusive growth and increased homeownership.
Pavan Kumar, Founder and CEO, White Lotus Group: The government’s initiative to encourage states to reduce stamp duty, particularly for women, is a commendable step towards increasing home ownership among women. This move, combined with the simplification of FDI rules, is poised to significantly boost foreign direct investment into the country. With better access to capital, developers can price houses more competitively, making home ownership more affordable. These measures collectively mark a significant advancement in the housing sector, promoting economic growth and providing more opportunities for individuals and families to own their own sanctuaries.”
Mayank Ruia, Founder and CEO of MAIA Estates: The Union Budget 2024 introduces key measures to boost the real estate sector, including significant investments in urban infrastructure and housing. The budget’s focus on green development and reduced stamp duties for women will promote sustainable projects and increase female home ownership. Additionally, 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.
Sanjeev Srivastva, Chairman & Founder of Assotech Group, a leading real estate company: The 2024 Union Budget marks a pivotal moment for the real estate sector, and as the Chairman & Founder of Assotech Group, I am both encouraged and excited by the government’s strategic initiatives. The substantial allocation of Rs 50,000 crore towards infrastructure development is poised to invigorate our industry, enhancing both urban and rural landscapes.
Moreover, the introduction of PM AWAS Yojana Urban 2.0 with a significant investment of Rs 10 lakh crore into urban housing underscores the government’s commitment to addressing the country’s urban housing needs. This initiative will provide a substantial boost to the real estate market, fostering growth and creating new opportunities for developers and investors alike.
The revised income tax slabs, including potential savings of up to Rs 17,500 per year for taxpayers, coupled with an increased standard deduction to Rs 75,000, are expected to enhance consumer purchasing power. This is likely to translate into increased demand for residential and commercial properties, further stimulating the real estate sector.
Additionally, with the focus on infrastructure development and the burgeoning real estate boom in states like Orissa, which is experiencing rapid growth and urbanization, we at Assotech Group are poised to leverage these developments. The enhanced financial environment and supportive government policies will enable us to continue driving innovation and delivering exceptional value in real estate.
In essence, these budgetary measures collectively represent a transformative opportunity for the real estate sector, aligning perfectly with our vision of creating impactful and sustainable real estate solutions.
Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited: Against the backdrop of global uncertainties and inflation, the Union Budget 2024-25 is transformative and forward looking with an eye on fiscal consolidation. The announcement of INR 11 lakh crore capital expenditure signifies the Government’s commitment to modernising India’s infrastructure through various significant projects and allocations, which will undoubtedly drive demand for Cement and other building materials. These initiatives collectively illustrate the Budget’s comprehensive and strategic approach to bolstering India’s infrastructure across various sectors.
Additionally, the Cement industry is in alignment with the Government of India’s net zero goals. The transition roadmap for ‘hard to abate’ industries to move from the ‘Perform, Achieve and Trade’ mode to the ‘Indian Carbon Market’ mode is a welcome step. The roadmap will further boost India’s energy infrastructure and encourage renewable energy adoption. Overall, this Budget is a win-win for both the economy and the environment, and the Cement industry is poised to play a pivotal role in the Nation’s development journey.
Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited: The Budget indeed paves the way for a robust and resilient economy, fostering growth that is both equitable and sustainable. Its focus on employment, skilling, and urban development is a significant step towards inclusive growth. The Prime Minister’s package, with its emphasis on skilling and employment linked incentives, will not only further enhance workforce capabilities but also generate new job opportunities within the Cement sector. As the Cement Industry is transitioning and adapting to newer technologies, India needs a workforce that is skilled and equipped. The allocation of INR 1.48 lakh crore for education, employment, and skilling initiatives stands to have a huge impact on creating a skilled workforce that can contribute effectively to the Cement Industry. The Cement Industry is a major contributor to employment generation in India. The Cement Industry welcomes the Budget’s strategic initiatives and is committed to supporting these efforts through innovation and sustainable practices.
Mohammed Salman, Co-founder of Tint Tone and Shade Interiors and Interior Design Content Creator: The budget presents a dual impact on interior design. While increased focus on urban development, transit-oriented projects, and affordable housing promises potential growth, the removal of indexation for capital gains on property sales is a significant setback. This could dampen real estate investment and consequently, interior design demand.
To remain globally competitive, continuous innovation is crucial. The budget includes the creation of the Anusandhan National Research Fund with Rs 1 lakh crore to support private sector-led research and innovation. Additionally, a Rs 1,000 crore venture capital fund aims to grow the space economy by five times in the next decade. These initiatives provide financial backing for businesses to invest in advanced technologies.
However, for a thriving innovation ecosystem, the government must also simplify regulations, expedite approvals, and enhance funding access for startups, thereby improving the ease of doing business.
The budget introduces three schemes under the Prime Minister’s Package to boost employment and skill development aiming at job creation and skill development across various sectors.
The budget brings a blend of opportunities and challenges for various sectors. While the focus on urban development and affordable housing presents growth potential for the interior design industry, the removal of indexation for capital gains on property sales poses a challenge.
Ramesh Ranganathan, CEO, of K Raheja Corp Homes: The budget announcement gives a boost to India’s real estate industry with the government’s decision to invest ₹10 lakh crore under the PM Awas Yojana-Urban, aimed at addressing the housing needs of 1 crore urban families. This strategic investment is a game-changer for the housing market and bolsters the construction industry by creating millions of jobs and improving living standards for people. Furthermore, the government’s decision to facilitate rental housing with dormitory-style accommodations for industrial workers will ensure dignified living conditions close to their workplaces, thereby enhancing productivity and overall well-being.
In alignment with the budget’s focus on women, encouraging states to lower stamp duties—especially for women—will significantly enhance the real estate market. By reducing transaction costs, this initiative will make property transactions more attractive and accessible, further driving market growth.
