Comprehensive Approach to India's Realty Sector: Budget 2024 Highlights
Mrinal Kumar, Partner at Shardul Amarchand Mangaldas & Co., highlights the key real estate related announcements in the Union Budget 2024.
Real EstateUnion Budget 2024Pradhan Mantri Awas YojanaRental Housing SchemeIndustrial CorridorsUrban DevelopmentLand AdministrationShaardul Amarchand Mangaldas CoReal Estate NewsJul 31, 2024
One of the key highlights is the expansion of the Pradhan Mantri Awas Yojana, with a proposed 3 crore houses to be completed for the identified beneficiaries, both rural and urban. The budget also focuses on fulfilling the needs of the urban poor and the middle-class sector, with an investment of INR 10 lakh crore, including assistance of INR 2.2 lakh crores in the next 5 years from the Centre. Additionally, the provision of interest subsidy to facilitate housing loans at affordable rates is also under contemplation.
Another significant announcement is the rental housing scheme for industrial workers, which is expected to boost development opportunities in the rental and affordable housing section. The government has also proposed to establish, facilitate, and develop dormitory-type rental housing for industrial workers, using the Public-Private Partnership (PPP) model.
The budget also focuses on the development of industrial corridors and industrial parks, with the government aiming to facilitate the development of plug-and-play industrial parks across 100 cities. The National Industrial Corridor Development Program has also been announced, which will grant approval for the development of 12 industrial parks in partnership with the states and the private sector.
In terms of urban development, the government has proposed to facilitate the development of peri-urban areas by effectively using town planning schemes and promoting economic and transit planning to promote 'Cities as Growth Hubs'. The government has also announced plans to formulate policies and frameworks for creative brownfield redevelopment of existing cities.
Furthermore, the budget has announced measures to moderate stamp duty, which is expected to further strengthen the urban development schemes. The government has also proposed to reduce stamp duty for the purchase of property by women.
The budget has also emphasized the need for better land administration, planning, and management, both for urban and rural lands. The government has proposed to encourage states to adopt a 'Unique Land Parcel Identification Number' or 'Bhu Adhaar' for rural lands, and to digitize land records, establish land registries, and link landowners/farmers to the land registries.
For urban lands, the focus is on enhancing urban planning, usage, and building bye-laws. The land records in urban areas will also be digitized with a GIS-based mapping system. An IT-based system for property records administration and updation and tax administration is also proposed to be established.
These announcements are expected to have a positive impact on the real estate sector, and will help to promote affordable and inclusive housing, and strengthen the financial position of urban local bodies.
Frequently Asked Questions
What is the main focus of the Union Budget 2024 for the real estate sector?
The main focus is on promoting affordable and inclusive housing, and strengthening the financial position of urban local bodies.
What is the Pradhan Mantri Awas Yojana, and what are its key features?
The Pradhan Mantri Awas Yojana is a housing scheme that aims to provide affordable housing to the urban poor and middle-class sector. The key feature is the provision of interest subsidy to facilitate housing loans at affordable rates.
What is the rental housing scheme announced in the Union Budget 2024?
The rental housing scheme is for industrial workers, and aims to provide dormitory-type rental housing using the Public-Private Partnership (PPP) model.
What are the key announcements related to urban development in the Union Budget 2024?
The key announcements include the development of peri-urban areas, promotion of economic and transit planning, and the formulation of policies and frameworks for creative brownfield redevelopment of existing cities.
What are the measures announced to moderate stamp duty in the Union Budget 2024?
The measures include encouraging states to moderate stamp duties, and reducing stamp duty for the purchase of property by women.
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