Budget 2024: Housing Sector, Real Estate Experts And Players Share Their Views Post-budget

As per a report by property consultancy ANAROCK, the affordable housing sector of India saw a decline of 20% percent in sales in 2023 as compared to a decline of 30% in 2022.

Interim Budget 2024: The interim budget for the financial year 2024–25 announced today was much anticipated and looked forward by the real estate players as they had hoped that the finance minister would provide a boost to the sector with a change in the definition of affordable housing.

As discussed in the pre-budget consolidated study of some of the biggest names, almost all of them had a subtle but firm expectation that the threshold limit would be increased from the existing Rs 45 lakh.

As per a report by property consultancy ANAROCK, the affordable housing sector of India saw a decline of 20% percent in sales in 2023 as compared to a decline of 30% in 2022. Therefore, it was expected that the Interim Budget 2024 would provide a big boost to the real estate sector.

Union Finance Minister Nirmala Sitharaman on Thursday strongly suggested that the housing and real estate sector has been given its due and post the Lok Sabha Elections more comprehensive and industry-friendly measures would be announced.

Here are the reactions from some of the reaction quotes on the Interim Union Budget 2024 from Real Estate and Infrastructure Sector experts:

1. “Under the PM Gati Shakti Plan, Rs 75000 crores have been invested in 2023-24 across 100 critical projects. The master plan is integral to India’s aim to build an inclusive, integrated, and comprehensive economy. Through systematic investments and capacity building it will improve productivity and enhance the overall business climate. The mega plan will be an absolute game changer for tier 2 and 3 cities in India through accelerated last-mile connectivity, mass mobility, green growth, and financial investments. Naturally, this will translate into increased demand for housing, commercial projects, warehouses, industrial parks, townships, etc.,” says Gurmit Singh Arora, National President, Indian Plumbing Association.

2. “The union budget reiterates a healthy economic growth marked by improved tax receipt, doubling of GST tax base, revision of fiscal deficit, etc. A healthy economy will augur well for real estate. GOI will come up with better policies and incentives to support mid-income housing, which is a commendable step. Another factor to look into is the constant growth in infrastructure through constructive steps. GOI has announced plans to build more airports, railway corridors, metro lines, EV facilities, etc. This will naturally translate into higher realty demand,” says LC Mittal, Director, Motia Group.

3. “In the middle-income segment, incentivizing women buyers can be a constructive step. This will increase the participation of women in the property market while also uplifting the overall demand. Women are now an important force in the Indian economy, as it is essential to leverage their potential judiciously. Another prudent step is to reduce the rental income taxation. In India, the rental income is taxed at 30%, which is seemingly high and is touted as a deterrent. A lowered rate will incentivize investments in the rental markets and can be instrumental in bridging the existing housing gaps, especially in urban centers,” says Anurag Goel, Director, Goel Ganga Developments.

4. “PM Gatishakti project can bring a windfall for real estate markets in tier 2 and 3 cities in India. The multimodal logistic projects will comprise building new airports, mass transit systems, railway corridors, roadways, waterways, etc. It will create a framework for a more inclusive, integrated, multi-phased growth in India. This will act as an economic growth multiplier with increased capacity development, employment creation, and investment inflow. Naturally this will push ahead real estate demand,” says Aman Gupta, Director, RPS Group.

5. “Benefits for women and first home buyers of a substantial nature will work as a catalyst in mid segment. Third home buyers to be encouraged. Rental income taxation to be reduced,” says Ananta Singh Raghuvanshi, President, NAREDCO Mahi.

6. “Outlining the goal of achieving the status of Viksit Bharat by 2047, the Interim Budget 2024 has incentivized the idea of Housing for All by initiating pro-people measures and ramping up modern infrastructural quality, which will invariably increase the demand for office spaces and retail assets in metro cities and nearby towns. As per a CBRE report, retail space leasing activity has shot up by 48% across eight major cities including NCR in 2023 in shopping malls and high street locations. The Budget has also given unequivocal importance to uplifting the standards of modern infrastructure to boost national growth and promote growth-inducive factors, that will concomitantly pace up demand and sales of commercial and retail projects in newly developing corridors and realty zones,” says Shiven Vikram Bhatia, Executive Director, Splendor Group.

7. “By advocating the philosophy of ‘Prosperous Bharat in harmony with nature’ and ‘First Developed India’, the Interim Budget 2024 presented by the Finance Minister announced Housing for Middle-Class scheme, Rooftop Solarization, and a new target of PM Awas Yojana-Gramin promising construction of 2 crore homes in the next five years. The idea of Modern Infrastructure and Geographical Inclusivity upheld in the Budget will usher in growth and systematic progress not only in metropolitan regions but also in Tier 2 and 3 realty zones. The demand for office and retail spaces is on a meteoric rise, which will increase manifold after the implementation of the reforms on the grass root level,” says Arvind Singh, Managing Director, Krasa Group.

8. “The ‘Viksit Bharat Budget’ had some keynote deliverances by the Honourable Finance Minister prioritizing pro-people initiatives, opportunities for growth and employment, Social Inclusivity, and Geographical Inclusivity in the Amrit Kaal. The Government has shown its steadfast commitment to ensuring Housing for All by announcing the Housing for Middle-Class scheme and setting a new target of construction of 2 crore homes in the next five years under the flagship PM Awas Yojana-Gramin program. The Housing for Middle-Class scheme marks a watershed period in the Indian housing landscape as it will financially empower the middle class and salaried strata of society to either build or buy their own homes, underlining economic amelioration of millions of people who sap in precarious conditions of unauthorized colonies and chawls. In addition, the Rooftop Solarization scheme will also be a boon as 1 cr household will be able to obtain up to 300 units of free electricity every month, leading to the development of resource-efficient economy,” says Amit Gupta, Director, Orris Infrastructure.

9. “Ensuring Housing for All was the central theme of the Interim Budget 2024 undergirding profound steps taken in the course of attainment of this objective. The Finance Minister announced a new eponymous scheme called ‘Housing for Middle Class’ under which the government will, through wilful measures, assist middle-class and low-income groups in constructing or purchasing their homes and help them accomplish their dream of home ownership. Additionally, the Government has also resolved to build 2 crore new homes in rural regions and villages under PM Awas Yojana-Gramin in the next five years. While giving 70% of houses under PM Awas Yojana in rural areas to women who are either sole or joint owners, the Government in its effort to ensure all-round social justice and equitable distribution of resources, has received plaudit from one and all,” says Vasudev Garg, Director, Rajdarbar Realty.

10. “The Interim Budget 2024 or Viksit Bharat Budget laid emphasis on the development of Modern Infrastructure, Geographical Inclusivity, and all-pervasive growth as the cornerstones of our rapidly growing economy. The Housing for Middle Class scheme announced by the Finance Minister which will empower the underprivileged sections to buy and build homes is a laudable move, enshrining the government’s commitment to Housing for All. This will speed up rapid urbanization and housing development in Tier 2 and 3 cities, attracting massive investments. On the whole, Luxury housing continues to gather steam, especially in metropolitan regions like Gurugram, while Affordable Housing developments will be predominant in Tier 2 and 3 markets. In addition, the Budget also announced the construction of 2 crore homes in the next five years under the PM Awas Yojana- Gramin. Although the demand for industry status and single-window clearances remain unmet, the Interim Budget introduced some pathbreaking decisions made on the principles of Reform, Perform, and Transform,” says Vikas Garg, Joint Managing Director, Ganga Realty.