Budget 2024 Gets Mixed Reactions From Realty Sector

BY Realty Plus

The real estate industry leaders share their mixed reactions on Budget 2024-25, welcoming some announcements and expressing disappointment on lacklustre budget for real estate.

Dr Niranjan Hiranandani, Founder, Hiranandani Group and Chairman, National Naredco opines, “Hon’ble 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. 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.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said, " Finance Minister underscored the government's recognition of the significance of homeownership. In a notable announcement, the FM stated a housing scheme would announce soon targeting the middle class, extending to those residing in rented houses with the aim of facilitating the construction or purchase of their own homes. This initiative is expected to revitalize the Mid housing & Affordable housing sector.”

Badal Yagnik, Chief Executive Officer, Colliers India expressed, “The Interim budget was laid on the premises of infrastructure, housing, green energy initiatives and innovation, setting up the foundation for a 6-7% sustained GDP growth in the next few years. The unwavering commitment to infrastructure development stands as a cornerstone for fostering economic growth, extending tangible impact on the real estate sector in the longer run. Amid positive market synergies in the form of stable interest rates, attractive incentives and increased affordability, domestic investors too are likely to resonate upbeat confidence towards all real estate segments.”

Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, said, “The interim budget stopped short of making big bang announcements but focused on fiscal prudence keeping fiscal deficit target at 5.1%. It however, continued to push the growth agenda. The creation of an interest-free fund for supporting R&D and innovation will propel the self-sufficiency and Make in India agenda even further. Domestic as well as FDI, through the extension of tax benefits till 2025 to startups and investments by sovereign and pension funds will continue to spur private investments which remains a focus area.”

Sandeep Runwal, President, NAREDCO Maharashtra, said, “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.”

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE said, “The industry has been requesting industry status for years, believing it would unlock benefits like easier access to credit, tax breaks, and infrastructure development. This wasn't explicitly addressed in the interim budget. Tax incentives for homebuyers, such as increasing the deduction limit on home loan interest under Section 24, were expected. The interim budget remained silent on this as well. Boosting allocations for schemes like PMAY (Urban) to improve affordability and encourage new projects in this segment was a key expectation. No major announcements appeared in the interim budget regarding this either.While the interim budget didn't directly address the real estate sector's key demands, the upcoming Union Budget might hold more concrete measures addressing industry concerns and potentially impacting market trends.”

Manish Jaiswal, Managing Director and Chief Executive Officer at Grihum Housing Finance Limited was of the view, “The decision to provide free electricity through rooftop solar installations to 10 million houses is a positive step toward fostering Green Housing, crucial for sustainable and clean GDP growth. The government's vision to balance economic growth with environmentally conscious practices is pivotal for a holistic and forward-looking economy."

Akash Pharande, Managing Director - Pharande Spaces said, “Unfortunately, the interim budget 2024 didn't directly include any major positive changes for India's housing industry. While the expectations included industry status, tax benefits, affordable housing boosts, and easing liquidity issues for developers, none of these materialized in the interim budget.”

Tags : Dr Niranjan Hiranandani Hiranandani Group National Naredco Anshuman Magazine Green Housing GDP growth Sandeep Runwal Manish Jaiswal Akash Pharande Pharande Spaces Grihum Housing Finance Limited CBRE JLL