Real estate sector has wholeheartedly welcomed Union Budget 2024, primarily owing to Finance Minister Nirmala Sitharaman’s generous allocation of Rs 2.2 crore for urban housing, which is expected to accelerate development.
Additionally, the opening of rental housing options under the PPP (Public-Private Partnership) mode will not only provide rental housing to people but also increase investment in rental income. The Finance Minister has suggested state governments reduce stamp duty. Following this, positive expectations have arisen in the real estate market.
Developers say that this will benefit home buyers and encourage investment in homes. This will directly benefit the sector. Furthermore, the government will spend more than INR 10 lakh crore on building infrastructure and urban homes.
Reacting to the budget, Manoj Gaur, Chairman, CREDAI National and CMD Gaurs Group, said, “The biggest announcement concerning the real estate sector is the provision of Rs 10 lakh crore investment in urban housing for the poor. This will be a milestone for affordable housing in the country, meeting the needs of 1 crore urban poor and middle-class families.
“Despite high demand, progress in this segment has been slow due to a lack of budgetary support. This funding is expected to lead to the rise of many new projects in the affordable housing segment. The provision for rental housing for industrial workers through a PPP model is also commendable. Additionally, the focus on transit-oriented development for urban centres with populations of 30 lakh and above will boost urban infrastructure. With an expected 30-40% increase in people moving into urban areas, this budget demonstrates a long-term vision. Overall, this budget is a significant boost for the real estate sector.”
Ashwinder R. Singh, Co-Chair of CII’s NR Committee on Real Estate, CEO Residential at Bhartiya Urban, stated that the focus on rural development and special financial support for states like Bihar and Andhra Pradesh will drive inclusive growth and will create a more favorable environment for real estate investments, ultimately contributing to India’s journey towards becoming a $5 trillion economy.
Sandeep Chhillar, Founder & Chairman, Landmark Group, stated that the presentation of the Union Budget for FY25 also highlighted the government’s focus on enhancing affordable housing, aiming to address concerns in this sector through a substantial investment of Rs 10 crore in urban housing, increasing housing supply and affordability, thereby positively impacting the real estate market’s dynamics.
Resonating the similar sentiments, Deepak Kapoor, Director, Gulshan Group, stated that the allocation of Rs 10 lakh crore in allocation for urban housing will enable affordable housing development.
Amit Modi, Director County Group, stated, “Besides, unlike the previous budgets, which had a significant rural push, the announcement to provide rental housing with dorm-like accommodation for migrant industrial workers under the PPP model is a game-changing initiative that will fill the much-needed gap and foster inclusive growth.
Yash Miglani, MD, Migsun Group, pointed out that the determined investment by the government proves a strong promise to urban development and social equity.
Uddhav Poddar, (MD- Bhumika Group), Ankush kaul (chief business officer – Ambience Group), Nayan Raheja from Raheja Developers, Saurav Sharma (Sales Director- Trisol RED), Harsh Gupta (CEO- Sundream Group), Kushagr Ansal (Director at Ansal Housing), and Prateek Mittal (ED at Sushma Group) have also welcomed the announcements, calling the budget a “game-changer”.
Other industry top bosses who expressed welcomed the Sitharaman’s budget are Mukul Bansal (MD- Motiaz, Tejpreet Singh (MD- Gillco Group), Rajjath Goel, (Managing Director at MRG Group), Ankit Kansal, (MD at Axon Developers), Neeraj Sharma (MD at Escon Infra Realtor), Ashwani Kumar from Pyramid Infratech, Nandni Garg, (Director- Rajdarbar Ventures), Sanchit Bhutani, (MD atGroup 108), Prasoon Chauhan (Founder & CEO- Aurika Homes), Sanjay Sharma (Director at SKA Group), Salil Kumar (Director- Marketing & Business Management at CRC Group), Ajendra Singh, Vice President, Sales and Marketing, Spectrum Metro, Pradeep Aggarwal (Founder & Chairman- Signature Global (India) Ltd) and Avneesh Sood, (Director at Eros Group).
Alakshendra Singh, head of corporate communications, Eros Group, however, called the Union Budget 2024 presented today is a “missed opportunity for India’s real estate sector”.
“While the allocation of ₹10 lakh crore for urban housing under PMAY-Urban 2.0 is commendable, the central assistance of ₹2.2 lakh crore over five years falls short of what is required to truly address the housing crisis. The promise of three crore additional houses sounds grand, but the practicalities and previous execution rates raise serious doubts. Urban development is touted as a key pillar, yet the support for rental housing and regulatory frameworks remains weak. The focus on industrial parks and infrastructure investments is promising, but the glaring omission of substantial incentives for private players in the rental housing market is disappointing.