NAREDCO (National Real Estate Development Council) has welcomed the Union Budget 2024, applauding its comprehensive approach to stimulating the real estate sector and overall economic growth. The budget’s focus on affordable housing, urban development, and infrastructure has been met with enthusiasm from industry leaders.
G Hari Babu, National President of NAREDCO, stated, “The allocation of ₹10 lakh crore for the PMAY Urban Scheme, targeting 3 crore houses, is a game-changer for the real estate sector. This substantial investment, coupled with the emphasis on rental housing and industrial parks, will significantly boost urban development and create numerous opportunities for our industry.
“The removal of the indexation benefit for property sales will have a considerable impact on the sector. However, the reduction of LTCG tax from 20 percent to 12.5 percent is a positive step. On the positive side, the budget’s provision for interest subsidies to facilitate affordable loans, and its focus on transit-oriented development for 14 large cities, will make housing more accessible and affordable, fostering a more balanced and sustainable housing market.”
Dr. Niranjan Hiranandani, Chairman of Hiranandani Group and NAREDCO, commented, “The budget’s strategic focus on skilling through private sector internships and CSR-funded training is commendable. This initiative will enhance youth employability and drive economic growth. Furthermore, the ₹11.11 lakh crore Capex allocation for infrastructure development will have a multiplier effect on the real estate sector.
we appreciates the government’s holistic approach to sustainable development, including initiatives for solar and renewable energy, water management, and solid waste management. These align well with the industry’s goal of climate-resilient real estate development.”
Rajan Bandelkar, Vice Chairman of NAREDCO, added, “We are particularly encouraged by the innovative measures such as digitization of land records and GIS mapping. These initiatives, combined with the focus on middle-class urban housing and workforce skilling, will undoubtedly contribute to the sector’s double-digit growth. The reduction in the holding period for long-term capital gains to 24 months will also boost investment in real estate.”
NAREDCO appreciates the government’s holistic approach to sustainable development, including initiatives for solar and renewable energy, water management, and solid waste management. These align well with the industry’s goal of climate-resilient real estate development.
The organization also welcomes the government’s emphasis on encouraging state governments to reduce stamp duty and other development premiums. This move is expected to make affordable housing more accessible and optimize development costs.
While acknowledging that the reduction in long-term capital gain tax to 12.5% without indexation benefits requires careful monitoring, NAREDCO believes that overall, the budget sets a positive trajectory for the real estate sector and the broader economy.
NAREDCO recognizes the budgets thoughtful direction and potential to keep India’s growth story strong amidst global uncertainties. The council looks forward to working closely with the government to implement these initiatives and drive sustainable growth in the real estate sector.