Here’s what the real estate industry got to say about the budget.

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.

Dr Niranjan Hiranandani, Founder, Hiranandani Group and Chairman, National Naredco
The FM decoded an integrated and equitable growth budget outlay encompassing significant social reforms, enhancing economic growth value chain, emphasize of sunrise sectors and impetus to urban & rural housing with mega infrastructure projection. India has risen in its global leadership by paving the way for world economies, setting new standards, establishing strong geo-political allies and corroborating address geoeconomic vagaries. The buoyancy in the domestic economy is an outcome of the comprehensive GDP growth mantra in the pursuit of the Sab ka Saath, Sab ka Vikaas objective. Keeping the fiscal consolidation target at 5.1% will decrease the cost of borrowing for businesses and industries. This in turn will help stimulate economic growth, stabilize the economy and reduce the risks of inflation. The enhancement in infrastructure outlay by 11% will bode well for firming up the growth of residential, commercial and industrial real estate asset classes across the geographies. The augmentation of multi-modal corridor connectivity with new railway corridors, and doubling of airports and ports corridors will have a multiplier effect on the real estate landscape. The extension of the PMAY scheme for rural areas is in accordance with the objective of Housing for all laid by the Hon’ble PMO. A focused direction is set for addressing the housing deficit needs of the urban poor with the buy or build house motto. The continual skilling & Upskilling of the working populace will help the sector gain a competitive advantage and increase direct as well as indirect employment opportunities. Therefore, India’s vision for Amrit Kaal is stated very clearly and thus the country is on track to becoming Vikshit Bharat by 2047.

Anuj Puri, Chairman – ANAROCK Group
As anticipated, the Interim Budget 2024 made no big-bang announcements, but it continued its focus on infrastructure upgrades and building connectivity across the country. This will benefit real estate growth in not just the top cities but in Tier 2 & 3 cities across the country. The FM made some announcements that will go on to benefit the sector both directly and indirectly:
PM Awas Yojana (Gramin) – Despite all the challenges, the implementation of this scheme continued, achieving the target of close to 3 crore houses and now aims for 2 crore more houses to be taken up in the next five years.
Housing for the middle class – The Government will launch a scheme to help deserving sections of the middle class, living in rented houses or slums, or chawls and unauthorized colonies, to buy or build their own houses. This is likely to free encroachment areas like slums for easier redevelopment.
Capex outlay allocation to be increased by 11.1% to INR 11,11,111 lakh Cr, accounting for 3.4 % of GDP – This will unlock the potential for real estate development across assets because major part of this allocation will be used for various infra upgrades and new projects.
Transit oriented development in urban areas – this may give a boost to housing demand in cities and lead to rise in residential prices.
Development of iconic tourist centres – this is likely to favourably impact the hospitality sector with hotels and restaurants across categories. Moreover, long-term loans proposed to states for tourism.
Extending tax benefit to startups for another year – this may help the office real estate to rejuvenate.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
The real estate industry expects a good change in response to the Interim Budget 2024’s pledge to support middle-class housing. The government’s dedication to helping those who live in chawls, unofficial colonies, slums, and rented homes achieve homeownership is a reflection of a revolutionary vision. As property developers, we applaud this initiative and anticipate working together to implement solutions for accessible homes. The finance minister’s initiative indicates a common goal for inclusive real estate development. It will boost the industry’s expansion and contribute substantially to achieving the goals of the middle-class population.

Ayushi Ashar – Director at Ashar Group & Member of Managing Committee of MCHI-CREDAI
The real estate industry expects a good change in response to the Interim Budget 2024’s pledge to support middle-class housing. The government’s dedication to helping those who live in unofficial colonies, slums, and rented homes achieve homeownership is a reflection of a revolutionary vision. As real estate developers, we applaud this initiative and anticipate working together to implement solutions for accessible homes. The finance minister’s initiative indicates a common goal for inclusive real estate development. It will boost the industry’s expansion and contribute substantially to achieving the goals of the middle-class population.

Ashwin Sheth, Chairman, Ashwin Sheth Group
We acknowledge the strategic direction outlined in the 2024 interim budget, particularly its focus on reinforcing the affordable housing sector through the increased allocation for the Pradhan Mantri Awas Yojana (PMAY). This puts a spotlight on the government’s unwavering commitment to encouraging inclusive real estate development, acknowledging the key role of affordability in comprehensively addressing housing needs. The allocation of 70% of PMAY houses to women in rural areas is of special significance and will go a long way towards providing secure living spaces and advancing women empowerment. The progress in the implementation of PM Awas Yojana (Grameen), approaching the target of three crore houses, with a commitment to taking up construction of two crore additional houses over the next five years, reflects the government’s dedication to meet the growing demand for housing in rural areas. Maintaining a delicate balance between promoting affordable housing and ensuring sustained growth across all segments is crucial, and will no doubt foster an environment conducive to growth, investment, and the holistic development of the real estate ecosystem. Moreover, the increased outlay for infrastructure to Rs 11.11 lakh crores in FY25, is a welcome move, giving further support for overall growth and development in the sector. Building on these developments, we look forward to continuing to help develop a robust and inclusive real estate landscape in India.

Also Read: REAL ESTATE SECTOR’S EXPECTATIONS FROM INTERIM BUDGET 2024-25

The post What’s in for the budget 2024-25 for middle class homebuyers? appeared first on Square Feat India.

In 2023, the residential real estate market experienced extraordinary growth, as new launches and home sales reached record highs. In 2023, sales of housing in the top seven cities reached an all-time high of about 4.77 lakh units, while sales of newly launched homes reached almost 4.46 lakh units.

The real estate industry’s outlook for 2024 is currently positive, but the results of the upcoming general elections will also have a significant impact on the demand for and growth in residential real estate.

The real estate industry invariably presents the Finance Ministry with a very ambitious wish list every year before the annual Union Budget. Industry status for the housing sector and single-window clearance for housing projects are standard asks and remain in place this year, as well.

Since the pace at which the issues that the real estate sector faces get resolved is generally quite slow, these expectations haven’t changed much – though they’re as pressing as ever. That said, we must have reasonable expectations for the interim budget, which will be unveiled before the general elections.

• Maximum deduction for home loans (u/s 24)

It is necessary to increase the Section 24 of the Income Tax Act’s INR 2 lakh tax rebate on home loan interest rates to at least INR 5 lakh. Doing so could stimulate a more robust market for housing, particularly in the budget homes segment, which has seen a decline in demand since the pandemic. 

• Decisive boost for affordable housing

Given how badly the epidemic affected this segment’s target audience, affordable housing has been affected severely. ANAROCK Research finds that the previously much-touted budget homes category saw a decline in overall sales – to approximately 20% in 2023 from over 30% in 2022, and nearly 40% in the period before to the pandemic.

Not surprisingly, this segment’s percentage of the total housing supply in the top 7 cities also fell to 18% in 2023 from nearly 40% in 2019.

Several interest stimulants that were offered to developers and consumers in this market over the years have expired in the last one to two years. It is imperative to revive and extend significant benefits, such as tax breaks, to encourage developers to construct more affordable housing and to make it possible for customers to acquire such homes.

• Modify the qualifying standards for affordable housing to make more buyers eligible for the additional deductions.

The Ministry of Housing and Urban Poverty Alleviation defines affordable housing as being determined by the buyer’s income, the size of the property, and its price. Affordable housing is defined as a house or apartment valued up to INR 45 lakh, with a carpet area of up to 90 square metres, located in non-metropolitan cities and villages, and 60 square metres in large cities.

The definition provided by the central bank, however, is based on the loans that banks provide to individuals so that they can purchase apartments or build houses.

The government needs to take a hard look at adjusting the qualifying cost of properties within cities’ affordable housing segment. Although the units’ defined size of 60 square metres is reasonable, the prices of up to INR 45 lakh make them unaffordable to a huge share of the target clientele.

For example, a budget of

• Release government land for affordable housing

Addressing the land shortage for this vital housing segment is also necessary. Certain lands that are owned by Indian Railways, Port Trusts, Department of Heavy Industries, etc., may be released by the corresponding government agencies. When this land is released at low cost specifically for affordable housing, it will also significantly lower real estate prices overall.

Also Read: Budget Growth Oriented, Needed More Thrust to Real Estate to Spur Demand: NAREDCO

The post Real Estate’s Expectations from the 2024–2025 Interim Budget appeared first on Square Feat India.

The new measures announced in the Union Budget 2023-24 may certainly help unleash Indian economy’s potential. However, from a real estate point of view, there were no major direct announcements that could be seen as immediate booster shots.

The enhanced allocation for PM Awaas Yojana by 66% to over INR 79,000 crores is certainly a boost for affordable housing, which was flagging due to increased input costs and also because the buyers in this segment, mostly from the unorganized sector, were still reeling under the impact of the pandemic. It is another step towards the government’s Housing for All mission.

The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity. Improved urban infrastructure will provide further impetus to Tier 2 & 3 cities. The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year. The tourism sector also has something to cheer for as the budget aims to boost domestic and international tourism.

As anticipated, the FM also tried to rejuvenate the MSMEs sector which has a multiplier impact on the growth of the overall economy. The revamped credit guarantee for MSMEs and special tax benefits and deductions will provide impetus to overall industrial development, and this can have a rub-off effect on the real estate sector since the pandemic slowed down demand for affordable housing in 2021 and 2022.

Resultantly, new supply in this segment also reduced. As per ANAROCK Research, 2022 saw a trend reversal with the share of new supply in the affordable housing category (

Changes in the income tax slabs, including exemption for income up to INR 7 lakh under the new tax regime and the new tax slabs, will doubtlessly benefit the middle class. However, whether the housing sector will get a collateral boost remains to be seen. The new tax regime offers no benefits that taxpayers can avail of under any Sections, including Section 80C – the previous home loan tax benefits.

Also Read: Budget 2023 Expectations – What’s in store for real estate in Union Budget 2023?

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