India Budget 2024: A Stepping Stone for Sustainable Growth in Real Estate
While the Budget didn't directly address real estate sector's demands, it focuses on job creation, skilling, and employment-linked incentives, which will boost the sector indirectly.
Real EstateBudget 2024Sustainable GrowthIndian EconomyJob CreationInfrastructure DevelopmentReal EstateJul 23, 2024
The 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, are steps in the right direction. These reforms will 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 rental housing for industrial workers through the PPP model, interest subsidies for rental housing, and Transit-Oriented Developments.
The additional 3 crore housing units in rural and urban areas under PMAY is a welcome step for closing the gap in the sector. The decision to increase the standard deduction along with lowering the tax slabs in the new tax regime for personal income tax should lead to an increase in disposable incomes for the middle-income group, which will bode well for demand in affordable and mid-income housing.
Bringing down the long-term capital gains tax from 20% to 12.5% is a welcome step, even if it comes with the removal of indexation benefits. This will encourage more liquidity in property transactions. Higher uniformity in long-term capital gains tax across different asset classes was a long-standing ask of investors.
The push for digitization, efficient land management, and modernized bylaws is also a boost for urbanization and real estate. This will improve ease of property transactions and strengthen municipal finances through increased property taxes.
Several industry experts have praised the budget for its focus on sustainable growth and development. They believe that the reforms introduced in the budget will create a conducive environment for the growth of the real estate sector and the Indian economy as a whole.
The budget has also received appreciation from leading developers, who believe that it will create a setting that supports steady expansion and innovation in the real estate sector.
Frequently Asked Questions
What is the main focus of Budget 2024 for the real estate sector?
The main focus of Budget 2024 for the real estate sector is on job creation, skilling, and employment-linked incentives, which will boost the sector indirectly.
What are the reforms introduced by the budget for urban and rural development?
The budget has introduced reforms such as rental housing for industrial workers through the PPP model, interest subsidies for rental housing, and Transit-Oriented Developments for urban and rural development.
How will the budget's focus on infrastructure development benefit the real estate sector?
The budget's focus on infrastructure development will create a conducive environment for the growth of the real estate sector by improving connectivity and accessibility.
What is the impact of the budget's decision to bring down the long-term capital gains tax on the real estate sector?
The budget's decision to bring down the long-term capital gains tax from 20% to 12.5% will encourage more liquidity in property transactions and create a boost for the real estate sector.
How will the budget's push for digitization and efficient land management benefit the real estate sector?
The budget's push for digitization and efficient land management will improve ease of property transactions and strengthen municipal finances through increased property taxes, creating a conducive environment for the growth of the real estate sector.
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