Budget 2024-25: What the Real Estate Industry Gained
The budget's focus on Transit-Oriented Development (TOD) for 14 large cities, including Mumbai, is a game-changer. TOD plans will not only improve connectivity and reduce congestion but also enhance the livability and attractiveness of urban areas.
Budget 2024 25Real Estate IndustryPradhan Mantri Awas YojanaTransit Oriented DevelopmentRental HousingStamp DutyLand Related ReformsCities As Growth HubsCreative Redevelopment Of CitiesLong Term Capital GainsReal Estate MumbaiJul 23, 2024
Pradhan Mantri Awas Yojana (PMAY) Three crore additional houses under the PMAY scheme in rural and urban areas have been announced, with necessary allocations being made. Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore.
Transit Oriented Development (TOD) TOD plans for 14 large cities with a population above 30 lakh will be formulated, along with an implementation and financing strategy. This will improve connectivity and reduce congestion, enhancing the livability and attractiveness of urban areas.
Rental Housing Enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place. Rental housing with dormitory-type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries.
Stamp Duty The Centre will encourage states to moderate stamp duty rates for all, and consider further lowering duties for properties purchased by women. This reform will be an essential component of urban development schemes.
Land-Related Reforms Land-related reforms and actions, both in rural and urban areas, will cover land administration, planning, and management, and urban planning, usage, and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support.
Cities as Growth Hubs The government will facilitate development of 'Cities as Growth Hubs' through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.
Creative Redevelopment of Cities A framework for enabling policies, market-based mechanisms, and regulation will be formulated for creative brownfield redevelopment of existing cities with a transformative impact.
Long-Term Capital Gains Long-term gains on all financial and non-financial assets will attract a tax rate of 12.5 per cent. The limit of exemption of capital gains on certain financial assets will be increased to Rs 1.25 lakh per year.
Industry Reacts Industry experts have welcomed the budget's focus on affordable housing, rental housing, and innovative developments, but have also expressed concerns about the lack of industry status and GST rationalization.
Frequently Asked Questions
What is the focus of the Budget 2024-25 for the real estate industry?
The budget focuses on affordable housing, improved accessibility, and innovative developments.
What is the PMAY scheme?
The Pradhan Mantri Awas Yojana (PMAY) scheme aims to provide housing for all by 2022.
What is Transit Oriented Development (TOD)?
TOD is a development concept that focuses on creating housing and commercial spaces near public transportation hubs.
What are the implications of the budget on stamp duty?
The Centre will encourage states to moderate stamp duty rates for all, and consider further lowering duties for properties purchased by women.
What is the impact of the budget on the real estate industry?
The budget is expected to boost the real estate industry by providing affordable housing options and improving accessibility and infrastructure.
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