Taking cognisance of the economic growth trajectory, the Union Budget 2024-25 holds significant importance for various sectors. With regards to real estate, noteworthy announcements, such as the continuation of the Pradhan Mantri Awas Yojana, have been met with widespread approval. The target to construct additional homes have also seen an uptick with the fund allocation shifting from Rs 2 crore earlier to Rs 3 crore in this fiscal year.
What’s more? Several new initiatives have been introduced that are poised to support long-term growth. From infrastructure to agriculture, green energy to redevelopment of potential tourists destinations, the Budget emphasis is feeding into the Viksit Bharat dream perfectly.
At a time like this, 99acres gauges the reactions from industry experts on the Interim Budget 2024-25, underlining the apprehensions and decoding the key takeaways.
Industry reacts to Union Budget 2024-25
Boman Irani, President, CREDAI
“CREDAI congratulates Hon’ble Finance Minister for presenting the Union budget 2024 – 25 that lays a development vision for the next five years. Under the PM Awas Yojana-Urban, the housing needs of one crore poor and middle-class families will be addressed with an allocation of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next five years.
The FM also made an announcement of allocations for completion of three crore houses in rural and urban areas to enhance ‘Ease of Living’ and dignity for crores of Indians. These announcements reiterate the Government's focus on “Housing for All”.
Rental housing with dormitory type accommodation for industrial workers in PPP mode is also the need of the hour. The Government continues to recognise the growing urbanisation and cities as growth hubs. Capital expenditure of Rs 11.11 lakh crore i.e. 3.4 percent GDP for infra will propel growth through infrastructure development and enhance connectivity across the country.
MSMEs are growth engines of the country, and the Credit Guarantee Schemes for MSMEs in manufacturing announced today with a new credit assessment model and a guarantee cover of Rs 100 crore will not only create employment but will also support Hon’ble PM’s “Make in India” vision and position India as a manufacturing hub for the world.”
Rattan Hawelia, Chairman, Hawelia Group
“The focus of the budget on youth, women and skill development shall surely act as catalyst for strengthen of human resource in the real estate sector. The allocation of Rs 10 lakh crore for housing needs of one crore poor and middle-class families under the PM Awas Yojana is an ambitious plan for the growth of the Nation. Rental Housing under PPP model for industrial workers was quite a welcoming reasonable decision for the sector. Overall, the foundation of sustainability and development is the ingredients of the budget and hence it is towards the right growth of the Country”.
S.K Narvar, Group Chairman, Trident Realty
“We welcome the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman, which emphasises substantial capital expenditure of Rs 10 lakh crore. This commitment to infrastructure development is a significant boost for the real estate sector, fostering growth and stability.
The focus on enhancing business ease and providing incentives for job creation will not only invigorate the economy but also create a conducive environment for real estate development. As we look ahead, this budget lays a promising foundation for sustainable urban growth, addressing housing needs and driving investments in our communities. We are optimistic that these initiatives will lead to a thriving real estate market, benefitting all stakeholders involved.
Ashish Agarwal, Director, AU Real estate
"We wholeheartedly embrace the Union Budget 2024-25 unveiled by Finance Minister Nirmala Sitharaman, particularly the ambitious allocation for infrastructure development. The proposed investment of Rs 10 lakh crore signals a transformative era for the real estate sector, paving the way for enhanced connectivity and urban expansion.
By prioritising ease of doing business and supporting job creation, this budget fosters an environment ripe for investment and innovation. We believe these strategic initiatives will not only meet the growing demand for housing but also stimulate economic growth, benefiting developers, buyers, and communities alike. Together, we can build a brighter future, turning vision into reality in the vibrant landscape of real estate.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
“The Finance Minister's recent budget declaration marks an important turn in addressing the housing requirements of one crore urban poor and middle-class families, with an investment of Rs 10 lakh crore. This will dramatically improve urban housing infrastructure, making cheap housing a possibility for many.
The PM Surya Ghar Muft Bijli Yojana, which intends to install rooftop solar panels for one crore families, is an admirable step towards sustainable living by incorporating renewable energy solutions into urban housing to minimise power bills and encourage environmental responsibility.
Additionally, encouraging states to moderate high stamp duty rates for all, coupled with slashing duties for women, is a progressive measure. The budget also emphasises transparent rental housing markets and enhanced services for urban development in 100 large cities, reflecting a forward-thinking approach to urban development. These steps collectively focus on inclusivity and sustainability, and I am optimistic about the positive impact these initiatives will have on the housing sector and the overall quality of life for urban residents.”
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 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 Rs 10 lakh crore, including central assistance of Rs 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 rationalisation 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 Rs 11,11,111 crore for capex, we anticipate a multiplier effect that will drive private investment in infrastructure.
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 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."
See our latest webstory on Union Budget 2024: Reactions from the Real Estate Experts
