Real Estate Industry Reacts To Budget 2024: Positive Outlook On Infrastructure & Middle-Class Housing Scheme – Free Press Journal

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Anuj Puri, Chairman and Founder, ANAROCK: 

From the real estate industry point of you its a good budget. Focus on Housing remains. I think the positioning of Rural Housing is a big one. Two crore houses for the poor. Plus thrust on infra structure continues and the government is interested in putting money here. This in turn will help the housing sector as well. On the whole government policies remain consistent. 

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Finance Minister Nirmala Sitharaman has indicated a new housing scheme for the middle class and people living in unauthorised accommodation, slums and chawls. Its a new policy which is yet to be spelt out. We are looking forward to it. How will this impact the real estate sector? Currently there are supply constraints…with government focus on affordable housing there will be more demand which in turn will bring in more affordable houses for the poor and mid income groups. This will only benefit the consumer and provide a boost to the industry. 

Boman Irani, President CREDAI:

Interim Budget presented by Finance Minister Nirmal Sitharaman reiterates PM’s vision of Sabka Saath Sabha Vikas, Sabka Vishwas. The focus remains of poor, youth, women and farmers and their empowerment.

Under the PM Awaas Yojana- Grameen the announcement to build 2 crore additional houses in the next 5 years to cater to the growing demand and announcement of a housing scheme to help deserving sections of middle class to buy and build their own houses is encouraging and will aid in the growth of the housing market.

The 1 lakh crore fund corpus for research in sunrise sectors announced today will boost innovations powered by private sector in India. Sustained focus on infra development under PM Gati Shakti Mission, increased and better road and rail connectivity to tier 2 and 3 cities will further housing sector growth and development in these cities. However, as the tax rates remain unchanged, the common man will not have additional money in his pocket, which maybe a deterrent to the spending capacity of tax payers.

Announcements made today lay the groundwork for the futuristic growth of Indian economy and the full budget as and when presented will give clarity on various fund allocations, fiscal deficit, and growth targets for the government.

Pankaj Kapoor Managing Director, Liases Foras:

From a real estate perspective, the budget is proposed to help deserving people with proper permanent housing targeted towards slums, chawl dwellers, and people living in rented or unauthorized accommodation. Having built close to three crore houses, the interim budget proposed to build two crore houses more under PMAY over their coming tenure. Post-COVID, despite a significant recovery in real estate sales, the affordable housing segment has been seeing declining trends attributed to the discontinuation of CLSS benefits from 31st March 2021. We expect the resumption of the CLSS scheme for affordable and mid-income houses. The proposed corpus of one lakh crore for tech-savvy growth would assist research and knowledge development in various sectors. Overall, the budget announcements (or lack thereof) reflect the government’s confidence that it would be voted back to power in the next election, after which it would spell out its strategy. 

Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd:

The budget showcases a strong projection of India’s journey from developing to a developed nation, with multiple announcements focused on the socio-economic upliftment of the masses under the PMAY scheme through a strong development of real estate and infrastructure.

The announcement of a housing scheme dedicated to middle-class citizens will empower the masses to shift to buying from renting, thus elevate the overall standard of living across the country. 

The Metro Rail and Namo Bharat expansion will influence the rapid spread of urbanization, thus leading to creation of micro-markets in and around metro cities.

In the pursuit of economic resilience, the Interim Budget also charts an ambitious course, unveiling a capital expenditure of Rs 11.1 lakh crore for FY25. With a prudent 11.1% rise in infrastructure spending, the budget echoes a commitment to aligning growth estimates. In addressing the pressing issue of deteriorating infrastructure, India’s imperative lies not in reduction but in a substantial increase in investment—a pivotal step towards a robust and sustainable future.

Dr Niranjan Hiranandani, Founder, Hiranandani Group and Chairman, National NAREDCO:

The interim budget gives an impetus to urban and rural housing with mega infrastructure projections.  It is hoped that a greater focus will be placed on rental housing to create housing surplus and meet the growing demand for housing. As a result, economic growth will be stimulated, the economy will be stabilized, and inflation risks will be reduced.

As infrastructure expenditures increase by 11%, residential, commercial, and industrial real estate assets across geographies will prosper. A multiplier effect on the real estate market will result from the expansion of multi-modal corridor connectivity with the addition of new railway corridors, as well as the doubling of airport and port corridors.

The PMAY scheme has been extended to urban and rural areas in accordance with the Prime Minister’s ‘Housing for All’ objectives. The motto “buy or build a house” is designed to address the housing deficit needs of the urban poor and middle-class buyer segment. In addition to increasing direct and indirect employment opportunities, the continued skilling and upskilling of the working population will help the sector gain a competitive advantage.

Sandeep Runwal, President, NAREDCO Maharashtra:

A key announcement in the budget that resonates with the real estate sector is the government’s ambitious goal of constructing two crore houses in the next five years under the PM Awaas-Rural scheme. Sitharaman proudly notes the proximity to achieving the three crore houses target under the PM Awaas Yojana – Grameen, emphasising the commitment to gender-inclusive development by allocating 70 percent of these houses for women.

Additionally, the budget introduces a housing program tailored for the middle class, aiming to assist deserving sections living in rented houses or slums to build their own homes. This initiative aligns seamlessly with the broader objective of fostering homeownership, empowering the middle class, and promoting self-reliance.

The Finance Minister’s proposed substantial increase in the infrastructure outlay for the fiscal year 2025, totalling Rs 11.11 lakh crore, further underscores the government’s commitment to bolstering the country’s infrastructure. Importantly, this allocation represents 3.4 percent of the GDP, strategically aligning with economic growth objectives and fostering a conducive environment for real estate development.

Domnic Romell, President CREDAI-MCHI:

The vision of ‘Housing for all’ gains momentum with the announcement of a new housing scheme for the middle class and plans to build 2 crore houses in the next 5 years under the rural housing plan. Initiatives like rooftop solarisation are expected to reduce electricity bills, encouraging middle-class investment in affordable housing.

We at CREDAI-MCHI would like to propose an increase in tax exemption in interest payments for housing loan in case of women home buyers to further empower women, making homeownership affordable and accessible to larger section of women home buyers making it a reality.

Kamal Khetan, Chairman & Managing Director, Sunteck Realty Ltd:

Finance Minister’s emphasis on the PMAY-Gramin (Rural) in the interim budget will further the objective of Affordable Housing for all. The real estate industry is also looking forward to the new housing scheme for the urban middle class mentioned by the FM today; we believe this will give an added boost to the sector. We are looking forward to the detailed plan proposal which is yet to be spelt out.

The sustained momentum in capital expenditure spending for expansion  of infrastructure development shows the intent of this government to continuously give a boost to housing infrastructure, entrepreneurship, and employment opportunities for the youth.

(As told to Draupadi Rohera)

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