Real Estate Sector’s reaction on Interim Budget 2024-25

Sandeep Runwal, President, NAREDCO Maharashtra
“The Interim Budget for 2024-25 presented by Union Finance Minister Nirmala Sitharaman reflects a comprehensive vision aimed at fostering inclusive growth and sustainable development in India. The focus on transforming India into 'Viksit Bharat' by 2047 underscores the government's long-term commitment to national development. This vision, encapsulated in the slogan "sabka saath, sabka vikas" (together with all, development for all), emphasizes the inclusive nature of the government's approach.
The emphasis on GDP, redefined as governance, development, and performance, is a strategic move, particularly in the context of the upcoming general election. This redefinition indicates a shift towards a holistic view of economic growth, one that intertwines effective governance and sustainable development with performance metrics. It's a narrative that might resonate well with the electorate, considering the administration's bid for a third consecutive term.
The commitment to the PM Awas Yojana Grameen, with the target of constructing 2 crore additional houses, continues the government's focus on rural development. Achieving the milestone of 3 crore houses under the rural housing scheme and setting an ambitious target for the next 5 years reflects a significant investment in infrastructure development that addresses a basic need – housing.
The announcement of a new housing scheme for the middle class is particularly noteworthy. This initiative seems to be aimed at addressing the housing needs of those living in substandard conditions like slums and chawls or those burdened by rent. By facilitating home ownership, the government is not only looking to improve living standards but also to stimulate the real estate sector and associated industries.
Overall, the budget appears to be strategically crafted with an eye on both immediate and long-term goals. It caters to key segments of the population – the rural poor, the middle class, and those looking towards the government for improved governance and development. The success of these initiatives, of course, will depend on effective implementation and the government's ability to meet these ambitious targets.”

 

Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI
“The Interim Budget 2024, delivered by Finance Minister Nirmala Sitharaman, exemplifies a conservative and assured fiscal plan. The authorisation of an 11.1% rise in capital spending to Rs 11.11 lakh crore, equivalent to 3.4% of GDP for the fiscal year 2024-25, is a welcome step that matches with market expectations, promoting an atmosphere conducive to economic growth.
Similarly, the government's dedication to infrastructure development is demonstrated by its emphasis on supporting worthy members of the middle class, particularly those living in slums or leased housing. This initiative is designed to facilitate the purchase or construction of their own homes. The ambitious objective of building two crore residences in rural regions over the next five years under the PM Awaas Yojana - Gramin is a notable endeavour. Furthermore, the near completion of the 3 crore home objective under the PM Awaas Yojana - Gramin and the start of a rooftop solar project to give free power to 1 crore families are excellent initiatives. Likewise, allocating 70 percent of these houses for women, emphasizes the government’s commitment to gender-inclusive development.
The budget's emphasis on green initiatives, bio-manufacturing, and blue economy activities is expected to have a substantial influence on real estate markets. The promotion of sustainable alternatives such as biodegradable polymers and bio-agri-inputs creates opportunities for environmentally aware real estate construction.
Furthermore, the extensive expansion of tourist centres, together with the implementation of a facility grading framework, presents exciting opportunities for the hotel industry. This is projected to help real estate in important tourist-friendly areas.
The Interim Budget 2024 represents a forward-thinking approach, tackling critical areas while driving the country towards a brighter, more sustainable future. The Finance Minister declared that the forthcoming July Budget will contain the comprehensive Vikasit Bharat agenda. She emphasized the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government's primary priorities, and we applaud her and the government for the same.”

 

Samyak Jain, Director, Siddha Group
“Firstly, the Finance Minister's emphasis on India as a "youthful nation with lofty aspirations" is a nod to the country's demographic advantage. This perspective is crucial as it underscores the government's commitment to harnessing the potential of its young population, which is pivotal for long-term economic growth and innovation.
The budget's continued focus on infrastructural upgrades is a strategic move. By investing in infrastructure, the government is not only enhancing the country's physical capabilities but also indirectly boosting the real estate sector.
The announcement of a new scheme to aid the middle class in acquiring or building their own homes is a commendable initiative. Targeting those living in slums, chawls, or rented houses, this scheme could be a crucial step towards inclusive development and addressing the urban housing shortage. It demonstrates the government's recognition of the housing challenges faced by a significant section of society and its commitment to ensuring housing for all. This scheme, once effectively implemented, will have far-reaching impacts on social stability, urban development, and quality of life.
Tax incentives for home buyers in this budget could have been a significant catalyst in further promoting home ownership and boosting the real estate sector.
Overall, the Interim Budget for 2024-25 appears to balance continuity in policy with new initiatives aimed at inclusive growth and development.”

 

Himanshu Jain, VP - Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)
“Given this is an Interim budget we believe today’s Union Budget presented by Finance Minister Nirmala Sitharaman is not a populist but a visionary one. It continues with the government’s commitment to an inclusive growth and sustainable development policy.
The government’s announcement to set up a 1 lakh crore corpus for tech savvy youth from the private sector with low or nil interest free loans is a welcome move. This will create a huge demand for commercial properties and give a major boost to the start-up business as well.
The government continues with its focus on rural upliftment with the decision to construct 2 crore houses for the rural poor, over the next 5 years. This is under the Pradhan Mantri Awas Yojana Gramin which is a positive step.
The government has given due recognition to the burgeoning middle class of our society by introducing a housing scheme for them, which will offer those residing in chawls or slums an opportunity to shift into more respectable housing enclaves.
However, there has been no mention on raising the tax rebate threshold which would offer additional tax benefits to first time home buyers in the affordable housing segment. Given the high cost of living in urban cities, this would have come as a big relief to them.”
 

Prateek Mittal, Executive Director Sushma Group
“The budget's announcement of housing provisions for middle-class renters is poised to invigorate real estate development in Tier 2 and 3 cities. An increase in CAPEX and a fillip to Gatishakti will aid infrastructure expansion, stimulating further growth in the real estate sector. Moreover, allocating a 1 lakh crore corpus for long-term, low or interest-free loans spanning 50 years will foster growth in technology-driven sunrise sectors. This is a commendable step, promising to propel innovation and economic advancement and boost the commercial realty segment's growth.”

Vidush Arya, Head - Strategy, Orris Group
“We welcome the budget and anticipate a positive response from the real estate sector. The 11% boost in the infrastructure budget will undoubtedly accelerate growth. Prospective buyers are anticipated to demonstrate a sustained interest in the real estate market as the government declared that the income tax slab will remain stable. It is promising that a 1 lakh crore corpus is being announced for a long-term, 50-year loan with low or no interest to support tech-savvy growth in the emerging sectors. This action would boost construction activity, which is good for real estate development in metro cities.”

Dr. Amish Bhutani, Managing Director, Group 108
“The government has once again shown a positive attitude towards Vande Bharat and Namo Bharat (Rapid Train) and has made it clear that infrastructure development is their foremost priority. This will directly benefit the development of cities. The rapid rail system will directly benefit the development of Noida and Greater Noida. Along with this, capital expenditure has been increased by 11%, which will further strengthen the infrastructure of various sectors. Although everyone was expecting an increase in the income tax slabs, with the slabs remaining stable, the real estate sector is expected to remain robust in 2024 as well.”

Salil Kumar, Director Sales and Marketing, CRC Group
“We applaud the government's budget and hope the real estate sector will respond favourably. The budget for infrastructure will increase by 11%, which will undoubtedly speed up growth. Since the government has announced stability in the income tax slab, prospective buyers are expected to showcase a continued interest in the real estate sector. With ample focus on infrastructural projects such as metro and rapid rail, the connectivity would also contribute to the overall development.”

Vikas Bhasin, Chairman & Managing Director, Saya Group
“The increase in the capital expenditure by 11% will surely enhance growth in the market. Also, the plans to promote Namo Bharat will also bring ease in connectivity among various cities, increasing the demand for property investments. The advent of metro rail and rapid rail has already been attracting massive investors and the trend is expected to continue over the next few years as well. Commercial real estate’s development would stay on the upward trajectory with the positive environment created by these factors.”

Amit Modi, Director County Group
“It was expected by the Government to be fiscally prudent given that it was an interim budget, but what has been a welcome suprise is the government’s continuous importance towards PM Awas Yojana Rural whereby 2 crore more houses will be taken up in the next five years to meet the requirement arising from the increase in the number of families.
We also appreciate governments announcement to provide housing for middle-class to realise their dream of owning their own home and  eagerly look forward to the finer details towards this cause._
Real Estate industry has been at the forefront of job creation and skill development, so we welcome the proposed measure to promote skill development and create 55 lakh new job opportunities for the youth.
Overall this balanced budget has maintained the much needed stability the economy required while going into the high decibal national event of General Elections and look forward to next budget in July 2024.”

 

Surender Kaushik, MD, Aryan Realty Infratech Pvt Ltd
“The 11% surge in the infrastructure budget signals a promising future. The government's decision to stabilize the income tax bracket not only instills confidence but also amplifies the trust of potential buyers in the real estate market, laying the foundation for a resilient and strong realty landscape.”

 

Rajesh K. Saraf, Managing DIrector Axiom Landbase
“We wish to convey our thanks to the Honorable Minister for unveiling the 6th budget. The provision of Rs 1 lakh crore for a 50-year long-term low or interest-free loan to foster technological innovation in emerging industries is a commendable move. This measure not only enhances the competitive position of the private sector but also stimulates construction activity, thereby contributing to the growth of real estate in significant urban hubs.”

Ankush kaul, chief business officer - Ambience Group
“The increased spending proposed by the government on infrastructure will add to the country's general economic prosperity and drive the demand for residential, commercial and retail spaces. The increase in CAPEX will provide a fillip to the infrastructure development, and lead to real estate development.”

Yash Miglani, MD, Migsun Group
“We welcome the government’s budget and are anticipating a positive response from the real estate sector. With the continued focus on the development of tier-2 and tier-3 cities, the government has enhanced the growth of these regions with the construction of airports and other connectivity modes to improve accessibility and visibility. This trend is expected to bring a further boom in real estate investments with increasing disposable income of prospective buyer.”

 

Nayan Raheja of Raheja Developers
“The increased spending on infrastructure, while on the one hand, increasing prosperity, will also boost economic prospects, which will encourage both the housing and commercial realty segments. Further, increase in the CAPEX outlay for 2025, by 11.1% to 11.11 lakh crores for 2025, as announced by the Finance Minister in her budget speech are also expected to aid the growth the real estate development.”

Ashwinder R. Singh, Co-Chairman, CII, NR Committee for Real Estate, CEO Residential at Bhartiya Urban
“Commending the government's forward-looking budget, the emphasis on affordable housing and infrastructure initiatives will ignite demand and unlock sector potential. The proposed Development Financial Institution adds a critical financing dimension. This budget sets the stage for robust growth, job creation, and a resilient infrastructure ecosystem. “

Rajjath Goel, Managing Director, MRG Group
“The increase in infrastructure spending is expected to improve economic prospects, which will benefit both the residential and commercial real estate markets. Additionally, the Finance Minister's announcement of an 11.1% rise in CAPEX outlays to 11.11 lakh crores for 2025 is anticipated to support the expansion of real estate construction.”

Mukul Bansal, MD attention Motiaz
"The economy seems to flourish in light of the recent budget announcement. It will give the real estate sector a boost. With infrastructure spending, economic growth, and an increased emphasis on technology-driven sunrise industries, the budget is expected to stimulate real estate development in residential and commercial segments. The introduction of housing provisions for the middle class in the budget is expected to stimulate real estate development in Tier 2 and Tier 3 cities." 

 

Manoj Gaur, CMD Gaurs Group and President CREDAI NCR
“The announcements in tbe budget focus on infrastructure development. This budget takes India's growth story forward. It definitely promotes infrastructure development. The measures taken by the government in the last few years have propelled Crores of people out of the poverty line. These people will need better housing. In the end, it will benefit the real estate sector. It is also a relief that no new tax has been imposed. Inflation is also under control, and the economy is on the fast track of growth. Under these circumstances, the real estate sector believes the current budget will aid its growth.”