Budget 2024: Unleashing New Investment Opportunities in Real Estate
The real estate sector is poised for growth, and Budget 2024 is expected to bring in measures to boost investment opportunities.
Budget 2024Real EstateInfrastructureInvestment OpportunitiesAffordable HousingReal EstateJul 07, 2024
The government's ambitious investment target of Rs 111 lakh crore in infrastructure up to 2025 under the National Infrastructure Pipeline is expected to have a significant spillover effect on real estate investments. The proposed Rs 25 lakh crore allocation for road infrastructure could unclog new real estate hotspots along significant corridors, while the planned investment of Rs 19 lakh crores in urban infrastructure could lead to a transformation in urban regeneration projects.
The emphasis on affordable housing, with a promise to build 2 crore houses by 2025, is expected to create new opportunities for investors in the mid-income segment. Additionally, the expected Rs 3 lakh crore allocation for digital infrastructure could lead to the development of data center real estate and smart city projects, promising returns of 14-16 per cent for early investors.
Industry experts are optimistic about the impact of the budget on the real estate sector. Anurag Goel, Director at Goel Ganga Developments, believes that the focus on infrastructure could turn the tables for real estate investment opportunities. LC Mittal, Director, Motia Group, expects the infrastructure push to revolutionize real estate investment landscapes, with opportunities arising from transit-oriented development, green buildings, and sustainable communities.
With the government's plans to expand metro rail networks in 25 cities by 2025, integrated townships are likely to come up along these corridors, providing returns of 20-25 per cent over 5-7 years. The allocation of Rs 1.5 lakh crore to renewable energy infrastructure could lead to the development of green buildings and sustainable communities, a segment expected to grow at a 13 per cent CAGR till 2027.
Overall, the real estate sector is poised for growth, and Budget 2024 is expected to bring in measures to boost investment opportunities. With the government's focus on infrastructure and affordable housing, the sector is likely to see significant investment activity in the coming years.
Frequently Asked Questions
What is the government's investment target in infrastructure up to 2025?
Rs 111 lakh crore under the National Infrastructure Pipeline.
What is the expected allocation for road infrastructure in Budget 2024?
Rs 25 lakh crore.
What is the target for affordable housing by 2025?
To build 2 crore houses.
What is the expected return on investment in data center real estate and smart city projects?
14-16 per cent for early investors.
What is the expected growth rate of green buildings and sustainable communities till 2027?
13 per cent CAGR.
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