Finance Minister Nirmala Sitharaman announced Indias Union Budget for 2024-25, focusing on employment, skill development, support for MSMEs, and the middle class. This pivotal moment for Indias fiscal policy outlined the governments financial roadmap, with all eyes on the strategies and allocations shaping the countrys economic trajectory. Key highlights included targeted reforms, infrastructure investments, and measures to boost consumption and employment. Notably, the Finance Minister announced substantial adjustments to personal income tax rates for the fiscal year 2024-25, aimed at reducing the tax burden on the people, maintaining exemptions for incomes up to Rs. 3 lakh.

Union Budget 2024: Real Estate Sector Responds to Strategic Investments and Opportunities Ahead

Rajjath Goel, Managing Director, MRG Group, commended the Union Budget for its clear commitment to sustainable urban development. “The Union Budget has made an unequivocal statement about its commitment to sustainable urban development, with a sharp increase in finances for projects aimed at improving connectivity and the quality of life in cities. The robust framework brought out in the new budget for integrating renewable sources of energy into housing projects in urban areas will modernize cities and accommodate the growing urban population effectively,” he said.

Echoing these sentiments, Harinder Singh Hora, Founder Chairman, Reach Group, hailed the Union Budget 2024 as a catalyst for transformative growth in Indian real estate. “The Rs. 11.1 lakh crore allocation for infrastructure is a game-changer, unlocking potential for both residential and commercial segments. The governments nudge for reduced stamp duty makes property investments more accessible and stimulates market growth. The focus on youth skilling and MSME support will create job opportunities and a more attractive business environment, further propelling the real estate sector. The budget lays a strong foundation for significant growth and transformation,” Hora noted.

Uddhav Poddar, MD, Bhumika Group, highlighted the emphasis on infrastructural development by allocating Rs. 11.1 lakh crore. “The emphasis on infrastructural development by allocating Rs. 11.1 lakh crore, along with employment generation and skill development, will boost real estate development and provide a fillip to the commercial segment. The promulgation of the PPP model for rental housing in urban centres, along with TOD, will also promote real estate development,” he stated.

Prateek Tiwari, MD, Prateek Group, spoke on the promising commitments of the Union Budget 2024. “The Union Budget 2024 offers promising commitments to infrastructural development, urban housing, skilling the youth, job creation, and supporting MSMEs. The emphasis on infrastructural development by allocating Rs. 11.1 lakh crore, along with employment generation and skill development, will boost real estate development and provide a fillip to both residential and commercial segments. The suggestion to reduce stamp duty by the state governments is a positive step, benefiting buyers by minimizing registry costs. Hence, the budget encourages the entire sector, acting as a catalyst for transformative changes,” he explained.

Addressing the needs of middle-class homebuyers, Ashwani Kumar, Pyramid Infratech, emphasized the major announcement in the Union Budget 2024 regarding the allocation of Rs. 10 lakh crore to the urban housing segment. “This step will promote affordable housing, meeting the needs of middle-class homebuyers. The suggestion to reduce stamp duty by the state governments is a very positive step, benefiting millions of flat owners. The Rs. 11.1 lakh crore expenditure on infrastructure development will boost both commercial and residential real estate,” he remarked.

Gurpal Singh Chawla, Managing Director, TREVOC, expressed his enthusiasm for the governments strategic focus. “The budget embodies a powerful vision for India’s future growth. We are thrilled to see the governments strategic focus on infrastructure development, job creation, youth skilling, MSME support, and urban housing. The proposal to reduce stamp duty is a game-changer, offering significant relief to millions of buyers by reducing registration costs. This will undoubtedly fuel demand and invigorate the sector. Furthermore, the emphasis on Transit-Oriented Development (TOD) and the establishment of industrial parks demonstrates a forward-thinking approach towards comprehensive development, transforming the real estate landscape and benefiting both residential and commercial segments.”

Saurav Sharma, Sales Director, Trisol RED, added, “The Rs. 10 lakh crore investment in urban housing is a strategic move that will have far-reaching impacts. By addressing the housing needs of 1 crore urban poor and middle-class families, the government is not only improving living standards but also driving economic growth through job creation and increased demand in the construction sector.”

Tejpreet Singh, MD, Gillco Group, praised the allocation for PM Awas Yojana-Urban. “The announcement of Rs. 10 lakh crore for the PM Awas Yojana-Urban to satisfy the housing requirements of one crore poor and middle-class families is a game-changing move. This huge investment will not only provide affordable housing but also stimulate economic growth by providing jobs and bolstering the construction industry. Its a vital moment for the real estate business, and we are delighted to contribute to this nation-building effort.”

Prasoon Chauhan, Founder & CEO, Aurika Homes, highlighted the significance of the budgets allocations. “A key highlight of the Union Budget 2024 is the allocation of Rs. 10 lakh crore to urban housing, which will significantly advance affordable housing and address the needs of middle-class homebuyers. Additionally, the recommendation for state governments to reduce stamp duty is commendable, providing substantial relief to millions of buyers by lowering registry costs. Meanwhile, the Rs. 11.1 lakh crore earmarked for infrastructure development is set to enhance both commercial and residential real estate sectors.”

In conclusion, the Union Budget 2024 has been positively received by real estate developers, who praise its focus on urban housing, infrastructure development, and supportive measures for MSMEs and the middle class. The substantial allocations for urban housing and infrastructure are seen as game-changing moves that will drive economic growth, create job opportunities, and stimulate both residential and commercial real estate sectors. The reduction in stamp duty and the emphasis on sustainable urban development further solidify the governments commitment to fostering a more robust and inclusive real estate market.