Budget 2024-25: A Boost for India's Real Estate Industry
The Union Budget 2024-25 has announced several measures to boost India's real estate industry, including affordable housing, urban development, and infrastructure growth.
Real EstateBudget 2024 25Affordable HousingUrban DevelopmentInfrastructure GrowthPradhan Mantri Awas YojanaTransit Oriented DevelopmentRental HousingStamp DutyLand ReformsUrban PlanningReal EstateJul 23, 2024
The Pradhan Mantri Awas Yojana (PMAY) has been allocated additional funds to provide housing for 3 crore more people in rural and urban areas. The PMAY Urban 2.0 will address the housing needs of 1 crore urban poor and middle-class families with an investment of Rs 10 lakh crore. The government has also proposed interest subsidies to facilitate loans at affordable rates.
Transit-Oriented Development (TOD) plans will be formulated for 14 large cities with a population above 30 lakh. The TOD plans will be implemented with an investment of Rs 10 lakh crore and will include central assistance of Rs 2.2 lakh crore over the next 5 years.
The government has also announced measures to promote rental housing, including enabling policies and regulations for efficient and transparent rental housing markets. Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries.
To promote affordable housing, the government has proposed to encourage states to moderate stamp duty rates and consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes.
Land-related reforms and actions will cover land administration, planning, and management, as well as urban planning, usage, and building bylaws. These reforms will be incentivized for completion within the next 3 years through appropriate fiscal support.
The budget has also announced measures to promote urban development, including the development of 'Cities as Growth Hubs' through economic and transit planning, and orderly development of peri-urban areas utilizing town planning schemes. A framework for enabling policies, market-based mechanisms, and regulation will be formulated for creative brownfield redevelopment of existing cities with a transformative impact.
The government has also proposed to reduce the holding period for long-term capital gains from 36 months to 12 months, which is expected to boost investments in real estate.
Industry experts have welcomed the budget announcements, saying they will provide a boost to the real estate industry. The measures announced in the budget are expected to increase demand for housing, promote affordable housing, and enhance the quality of life in cities.
However, some experts have expressed disappointment that the budget did not address some of the industry's core challenges, including the granting of industry status, input tax credit, and reduction of GST.
Overall, the Union Budget 2024-25 has announced several measures to boost India's real estate industry, which are expected to have a positive impact on the economy.
Frequently Asked Questions
What is the Pradhan Mantri Awas Yojana (PMAY)?
The PMAY is a government scheme that aims to provide housing for all by 2022. The scheme provides financial assistance to eligible beneficiaries to construct or purchase a house.
What is Transit-Oriented Development (TOD)?
TOD is a concept that promotes mixed-use development around public transportation hubs, reducing the need for personal vehicles and promoting walkable communities.
What is the significance of reducing the holding period for long-term capital gains from 36 months to 12 months?
Reducing the holding period for long-term capital gains is expected to boost investments in real estate, as it will provide more flexibility to investors and reduce the tax burden.
How will the budget announcements impact the real estate industry?
The budget announcements are expected to provide a boost to the real estate industry, increase demand for housing, promote affordable housing, and enhance the quality of life in cities.
What are the challenges facing the real estate industry that were not addressed in the budget?
Some of the challenges facing the real estate industry that were not addressed in the budget include the granting of industry status, input tax credit, and reduction of GST.
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