While the govt speaks of increased emphasis on infrastructure and real estate, some ask is it enough to realise the dream of Viksit Bharat.
Abhinandan Lodha – Chairman, The House of Abhinandan Lodha: The 2024-2025 Budget is a growth-centric blueprint with profound implications on employment and employability through real estate, infrastructure, and tourism. This budget marks a significant shift towards holistic growth, focusing on affordable housing. The allocation of ₹2.2 lakh crore for constructing one crore houses in urban areas and two crore houses in non-urban areas demonstrates the government’s commitment to improving living standards. This initiative will generate substantial employment opportunities and bolster ancillary industries. The ₹1.5 lakh crore incentive for infrastructure development will enhance connectivity and drive growth across states. The PM Awas Yojana, with a budget of ₹10 lakh crore, alongside the rationalization of stamp duties, digitization of land records using GIS, and introduction of unique land parcel identification numbers for rural areas, reflect a forward-thinking approach. Additionally, the ₹10 trillion allocation for tourism and cultural corridor development will stimulate local economies. These measures are poised to invigorate the real estate sector, setting the stage for a robust economic future.
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”
Sandeep Runwal, Managing Director, Runwal Group: We welcome the government’s visionary Budget aimed at transforming the real estate industry and promoting equitable urban development. This Budget sets the stage for inclusive growth through the PMAY initiative, which plans to build 3 crore homes in rural and urban areas and create rental housing support for industrial workers. 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. These initiatives address current housing needs while providing a foundation for long-term urban expansion and community development. By embracing technology, such as integrated platforms for transparent property transactions and efficient urban planning, we ensure that every step toward redevelopment and affordable housing leads to a brighter future. Overall, we believe the Budget will drive robust growth in the Indian real estate sector.
Subahoo Chordia, Head – Real Assets Strategy, Edelweiss Alternatives: The government has maintained its allocation towards infrastructure sector at INR 11+ lakh crores (i.e. 3.4% of GDP) and additional interest free loan of INR 1.5 lakh crores to States will be a booster for the infrastructure segment. The budget has lent further emphasis to multiple infrastructure segments towards development of roads, airports etc. Further, industrial parks, to service 100+ cities and development of 12 specific industrial parks under national schemes is envisaged.
The Government has lent further weight in its fight against climate change. The fiscal incentives for rooftop solar and pumped storage will enhance energy security and availability. Further indirect tax incentives towards renewable energy items and critical minerals such as lithium, copper bodes well for the segment.
Overall the budget maintains its focus on long term growth and sustainability and is positive towards infrastructure segments.
Sonit Singh, Chief Business Officer – Real Estate, Asset Management & Advisory, Arka Financial Holdings Private Limited (AIASPL): We welcome the initiatives announced in the Budget 2024-25, which are set to significantly impact the real estate sector. The government’s continued focus on infrastructure development and urban planning will facilitate the expansion of flexible workspace solutions across the country. The retention of infrastructure spending at ₹11.1 trillion, equivalent to 3.4% of GDP, and the allocation of ₹1.5 trillion for interest-free loans to states for infrastructure spending are commendable steps that will drive growth in the sector.
The significant investment by the Central Government over the years in building and improving infrastructure has had a strong multiplier effect on the economy. Maintaining strong fiscal support for infrastructure over the next five years will further enhance this impact. The encouragement for states to provide similar support, backed by long-term interest-free loans, will ensure that infrastructure development remains a priority across the nation.
Moreover, the promotion of private investment in infrastructure through viability gap funding and enabling policies will create a conducive environment for further growth. The development of Digital Public Infrastructure (DPI) applications for credit will also support the digital and technological advancements necessary for the future of flexible workspaces.
These measures, along with the clarification on GST and electricity charges, are expected to streamline operations and reduce ambiguities, ultimately benefiting our clients by providing more cost-effective and transparent service structures. We are confident that these initiatives will not only drive growth in the flexible workspace industry but also contribute to the broader economic development of emerging urban centres.”
Sarveshaa SB, Chairman and Managing Director, BHADRA Group: “Today’s Union Budget announcement aligns with BHADRA Group’s mission of delivering high quality living spaces. This forward-looking plan prioritizes housing, urban development, and infrastructure, creating a dynamic environment for strategic growth and innovation. The “Cities as Growth Hubs” initiative, with its focus on economic and transit planning, presents exciting opportunities for real estate development. BHADRA Group’s expertise in building sustainable and well-connected communities positions them to significantly contribute to this vision.
Abhishek Raj, Founder & CEO of Jenika Ventures: We highly support this year’s Union Budget’s provision towards the Indian real estate sector. The allocation of Rs 10 lakh crore under the PM Awas Yojana, Urban 2.0, and the Rs 2.2 lakh crore push for affordable housing will notably increase homeownership among the urban poor and middle class. The budget’s significant investment in infrastructure, amounting to Rs 11.11 lakh crore or 3.4% of India’s GDP, showcases strong fiscal support poised to propel economic growth and development throughout the nation. Apart from this, the budget’s enhancements in Mudra loans and the removal of the angel tax will undoubtedly boost MSMEs and encourage entrepreneurship. Also, promoting states to reduce stamp duties on homes bought by women marks a significant step toward achieving gender parity in real estate ownership. Additionally, this year’s Union Budget provides a solid foundation for the real estate industry, especially in Metro Cities and Bihar where housing shortages and infrastructure development are major concerns. With Rs 2.66 lakh crore allocated for rural development, including the construction of three crore more houses, areas like Bihar will greatly benefit, boosting economic growth and improving overall living conditions. However, it is concerning that the indexation benefit for real estate sales has been eliminated. In short, the 2024 Union Budget places India on a path of sustainable prosperity by presenting a comprehensive plan to address housing affordability, infrastructure development, and economic inclusion.
Amit Porwal, Director at Aranyakaa Farms: The Urban Housing 2.0 initiative of PMAY is highly commendable. It is a clear indication that the government has a strong concern for urban housing issues, based on the allocation of ₹10 lakh crore with ₹2 lakh crore central assistance and subsidized rates. This is a big step towards solving the housing crisis for lower class in urban areas across the country.
Also, setting up digital agriculture infrastructure, annual digital crop surveys and mapping of farmers to their land parcels are progressive steps towards this direction. They will not only enable better credit risk assessment but also increase formal credit penetration in agriculture. A more robust and inclusive economic environment will be created as a result of these measures that will benefit urban as well as rural communities.
Ravindra Pai, Managing Director, Century Real Estate: The government’s substantial investment of ₹10 lakh crore for urban housing and the central assistance of ₹2.2 lakh crore over the next five years will significantly enhance housing affordability and accessibility for the urban poor. Additionally, encouraging states to lower stamp duties for properties purchased by women is a progressive step towards gender inclusivity in property ownership. The envisioned scheme for 100 weekly street food hubs and the transit-oriented development plans for large cities align with our vision of sustainable urban living, promising both economic growth and improved quality of life for urban residents. The Finance Minister also highlighted the significant infrastructure investments made over the years, which have triggered a multiplier effect. This commitment will continue over the next five years, with ₹11,11,111 crore allocated in capex this year, constituting 3.4% of GDP. Such investments are pivotal for sustained economic growth and urban development.
Akhil Saraf, Founder and CEO, Reloy: If we’re treating real estate investments at par with equities, it invites serious rethinking in terms of stamp duty on resale. Stamp duty is 5-6% of property value as opposed to 0.1% STT or securities transaction tax in India.
We need to make India’s largest asset class more attractive to invest in. Last year the total investment in residential real estate by private equity funds was just USD 1 Billion, which is less than USD 1 per person in India.
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.
Ravindra Pai, Managing Director, Century Real Estate: The government’s substantial investment of ₹10 lakh crore for urban housing and the central assistance of ₹2.2 lakh crore over the next five years will significantly enhance housing affordability and accessibility for the urban poor. Additionally, encouraging states to lower stamp duties for properties purchased by women is a progressive step towards gender inclusivity in property ownership. The envisioned scheme for 100 weekly street food hubs and the transit-oriented development plans for large cities align with our vision of sustainable urban living, promising both economic growth and improved quality of life for urban residents. The Finance Minister also highlighted the significant infrastructure investments made over the years, which have triggered a multiplier effect. This commitment will continue over the next five years, with ₹11,11,111 crore allocated in capex this year, constituting 3.4% of GDP. Such investments are pivotal for sustained economic growth and urban development.
Shray Verma, CEO at Shray Projects: Shray Projects views the recent budget positively for real estate, especially in affordable housing. PM Awas Yojana (PMAY) 2.0 targeting one crore urban families and a substantial allocation of 10 lakh crore for urban housing are key highlights. The potential stamp duty rationalization for female homebuyers and emphasis on infrastructure development near 100 cities are also promising. Challenges in rental housing transparency remain, but the overall focus on affordable housing and infrastructure is encouraging for industry growth.
- Affordable Housing: The Budget announcement includes the launch of PM Awas Yojana (PMAY) 2.0, targeting one crore urban poor and middle-class families with a substantial allocation of 10 lakh crore for the urban scheme. This initiative aims to address the significant demand for affordable housing by providing 3 crore houses, thereby revitalizing this crucial segment of the real estate market.
- Stamp Duty: The anticipated revision of stamp duty rates across states aims to benefit female homebuyers by making property registration more accessible and affordable. This initiative not only aims to reduce transaction costs but also promotes gender equity in property ownership.
- Tax Reforms: The Budget introduces revisions in tax slabs and increased deduction limits under the new tax regime, with the potential to significantly enhance disposable income for taxpayers. These reforms are expected to stimulate investments in residential real estate and other sectors, driving economic activity and promoting overall financial well-being. By simplifying tax compliance and reducing the overall tax burden for individuals.
Vedanshu Kedia, Director, Prescon Group: While the reduction in the long-term capital gains (LTCG) tax rate from 20% to 12.5% is a welcome move, the removal of the indexation benefit presents a mixed impact for property sellers. The indexation benefit has historically allowed sellers to adjust the purchase price of their property for inflation, thereby reducing the taxable gains. Without this adjustment, sellers may end up paying more tax in real terms, especially in a high-inflation environment.
For many property owners, particularly those who have held their assets for a long period, the lack of indexation could result in a higher tax outgo than under the previous regime. This change might affect long-term investors and could potentially dampen the enthusiasm for long-term property investments. However, it is also essential to consider that the lower tax rate could incentivize more transactions and boost liquidity in the real estate market.
Ultimately, the real impact will vary based on individual circumstances, including the rate of inflation and the holding period of the property. It is advisable for property owners to closely analyze their specific situations and possibly seek professional tax advice to navigate this new landscape effectively.
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.
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.
Vikas Bhasin, Chairman & MD, Saya Group: The 2024 Union Budget’s allocation of Rs 10 lakh crore for urban housing is a major boost for the real estate sector. This investment will significantly address the housing needs of urban families and spur growth. The PM ‘Surya Ghar Muft Bijli Yojana’ for rooftop solar installations is a commendable step towards sustainable living. The positive trends in housing loans reflect a balanced and encouraging outlook for the market. Saya Group looks forward to contributing to the urban development landscape with innovative and luxurious homes.
Satyendra Prasad Narala – Managing Director, Regency Ceramics: The Finance Minister’s announcement of a ₹10 lakh crore investment in urban housing through PMAY Urban 2.0 is a significant boost for India’s real estate sector and related industries such as Ceramics and Tiles Manufacturing. This substantial infusion, including ₹2.2 lakh crore to rejuvenate the affordable housing segment and is expected to drive demand for construction materials and stimulate growth in sectors like ceramics, fostering innovation in construction technologies for affordable housing.
Moreover, the enhanced focus on middle-class families is likely to encourage diverse housing types and urban design solutions.
In tandem with this, the focus on MSMEs is commendable. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, along with support for E-commerce export hubs, will fuel growth and competitiveness. However, while welcoming these measures, we urge additional support for sectors like Ceramics to ensure sustainable growth.
Kuldeep Jain, Founder and CEO, Build Capital: Many urban housing development projects would need short or mid – term financing, which can be filled up by financial institutions. This will give a fillip to India’s untapped financing market in the real estate sector. Further, the rental housing scheme for industrial workers would also accelerate rental housing projects.
Aparna Reddy, Executive Director, Aparna Enterprises Ltd: The 2024-25 budget presents a promising roadmap for India’s growth, with a strong focus on infrastructure development in both rural and urban areas. The record-breaking allocation of ₹11,11,111 crore for capital expenditure (3.4% of GDP) signifies a strong commitment from the central government in this area. The budget also encourages private sector participation in infrastructure development. Initiatives like viability gap funding and enabling policies create a supportive environment for companies to contribute their expertise and resources in the infrastructure, housing, and building materials sectors. This renewed emphasis on infrastructure, particularly in rural areas through PMGSY Phase IV, will accelerate the infrastructure works in these regions. We believe that the improved connectivity in rural areas, connecting 25,000 habitations, will create a significant demand for roads, bridges, and power grids etc. This will drive activity for construction companies and create a ripple effect throughout the building materials industry, with increased demand for cement, steel, and other essential materials. Furthermore, improved rural connectivity will act as a catalyst for housing demand. Easier access to markets and services will incentivize people to build new homes or renovate existing ones, leading to increased demand for housing materials and construction services.
Beyond this, the investment of ₹10 lakh crore to address the housing needs of the urban poor and middle class under PM Awas Yojna Urban 2.0 will spur growth in the real estate industry and the demand for construction materials.
By focusing on overall infrastructure development, this year’s budget presents a strategic opportunity for India’s economic growth and strong steps to realise the dream of a developed India @ 2047.
y Zafeer Ahmed, Founder of XRE consultant: The 2024 budget introduces impactful measures for the Logistics and real estate sector. Encouraging states to lower stamp duty for property purchases by women promotes gender equality and boosts sales. Digitizing land records with GIS mapping and introducing the Unique Land Parcel Identification Number (ULPIN) will streamline land acquisition and reduce disputes and will help in quicker due diligence of the land. Further supporting industrial and economic growth the government will develop investment ready “plug and play” industrial parks in 100 plus cities through PPP model. Additionally, the announcement of twelve industrial parks under the National Industrial Corridor Development Programme and the provision of ₹11,11,111 crore for infrastructure development (3.4% of GDP) underscore the government’s commitment to enhancing infrastructure.
Apart from this on a Logistics front, the union budget has unveiled ambitious plans on the creation of dedicated e-commerce export hubs. However, with the National Logistics Policy (NLP) in place, initiatives requiring consideration include fast-tracking private sector participation with special incentives for PPPs in MMLP development, as well as concessions for land prices for industrial warehouses and logistics parks. At XRE Consultants, we are optimistic about these developments and look forward to leveraging these opportunities to better serve our clients.
Rohit Maingi, Founder & Partner at DnR Realty Consultants: The 2024 budget brings several positive changes for the real estate sector. Lowering stamp duty for women and reinstating the home loan interest subsidy under PMAY will boost property sales and make homeownership more attainable. Enhanced policies for a transparent rental market and the digitization of land records with GIS mapping will simplify transactions and minimize disputes. The establishment of twelve new industrial parks and significant infrastructure investment further demonstrate the government’s commitment to growth. We are enthusiastic about these developments and eager to leverage these opportunities for our clients.
