Budget 2024: A Boost to Sustainable Growth in Real Estate
The Union Budget 2024 focuses on MSMEs, employment, skilling, youth, and middle-class, with indirect benefits to the real estate sector through job creation, infrastructure, and urban redevelopment.
Budget 2024Real EstateSustainable GrowthInfrastructureUrban RedevelopmentReal Estate MumbaiJul 23, 2024
Samir Jasuja, Founder and CEO of PropEquity, appreciated the government's call to state governments to reduce stamp duty and initiate land-related reforms, including urban planning, usage, building bylaws, and GIS mapping of land records. These steps are expected to not only benefit the real estate sector but also act as a strong growth propeller for the Indian economy.
The budget has also given ample attention to urban and rural development, with initiatives such as rental housing for industrial workers through the PPP model, interest subsidies for rental housing, and Transit-Oriented Developments. Additionally, the government's aim to provide 3 crore housing units in rural and urban areas under PMAY is expected to close the gap in the sector.
Experts believe that the changes in personal income tax, including the increase in standard deduction and lowering of tax slabs, will lead to an increase in disposable incomes for the middle-income group, thereby boosting demand in affordable and mid-income housing. However, the changes in capital gains tax remain a concern.
Amit Goyal, Managing Director, India Sotheby's International Realty, praised the budget for striking a delicate balance between prioritizing infrastructure, job creation, and MSMEs while maintaining fiscal discipline. The commitment to reduce the deficit to 4.5% and below over the next few years is expected to ensure long-term economic stability, high credit rating, and FDI inflows for India.
The budget has also brought down the long-term capital gains tax from 20% to 12.5%, encouraging more liquidity in property transactions. Furthermore, the push for digitization, efficient land management, and modernized bylaws is expected to boost urbanization and real estate, improving ease of property transactions and strengthening municipal finances through increased property taxes.
Leading developers have also welcomed the budget, with many appreciating the focus on infrastructure, job creation, and urban development. They believe that the budget will drive private investment, fostering economic growth and stability.
In conclusion, the Union Budget 2024 has set the stage for a sustainable growth trajectory in the real estate sector, with its focus on job creation, infrastructure, and urban redevelopment. The sector is expected to benefit indirectly from the various reforms introduced in the budget, leading to increased demand and growth in the coming years.
Frequently Asked Questions
What is the focus of the Union Budget 2024?
The Union Budget 2024 focuses on MSMEs, employment, skilling, youth, and middle-class, with indirect benefits to the real estate sector.
How will the budget benefit the real estate sector?
The budget will benefit the real estate sector through job creation, infrastructure, and urban redevelopment, leading to increased demand and growth.
What are the key initiatives introduced in the budget for urban and rural development?
The key initiatives introduced in the budget for urban and rural development include rental housing for industrial workers through the PPP model, interest subsidies for rental housing, and Transit-Oriented Developments.
How will the changes in personal income tax affect the real estate sector?
The changes in personal income tax, including the increase in standard deduction and lowering of tax slabs, will lead to an increase in disposable incomes for the middle-income group, thereby boosting demand in affordable and mid-income housing.
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