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Union Budget 2024: Boosting Real Estate Growth through Urbanisation and Infrastructure Development

By GeoSquare News Desk · Published 2024-07-23

The Union Budget 2024 has received widespread acclaim from real estate industry leaders for its emphasis on urbanisation, infrastructure development, and women's empowerment. Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group, praised the government's goal to increase the real estate sector's GDP contribution from 8% to 13% by 2025. The budget has allocated Rs 2.2 lakh-crore for urban housing affordability and Rs 10 lakh-crore to address housing needs for urban poor and middle-class families, including dormitory-style rental housing for industrial workers under the PPP mode.

Mohta highlighted the benefits of rental housing with dormitory-type accommodation for industrial workers, stating that it will provide better living conditions for industrial workers. Shishir Baijal, chairman and managing director of Knight Frank India, echoed these sentiments, welcoming the budget's focus on long-term social and infrastructure development. He appreciated the Rs 10 lakh-crore allocation under the PMAY scheme and initiatives to promote rental housing, alongside regulatory reforms like digitisation of land records and GIS mapping.

Sahil Saharia, CEO of Bengal Shristi Infrastructure Development Ltd., commended the government's introduction of a new interest subsidy scheme and additional funding for affordable housing, highlighting the PPP model for rental housing aimed at enhancing accessibility and affordability for industrial workers. Amit Goyal, managing director of India Sotheby's International Realty, welcomed the reduction in long-term capital gains tax, foreseeing it would stimulate liquidity in property transactions and meet investor demands for uniformity in tax rates across asset classes.

Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, expressed support for the Budget's measures to boost housing for all. He emphasised the importance of the Rs 1.48 lakh-crore outlay dedicated to employment generation, which should boost incomes for homebuyers in the affordable housing segment. Das also praised initiatives to boost tourism corridors in states like Bihar and Odisha and the Rs 15,000 crore allocation for the development of the capital of Andhra Pradesh, which will drive real estate development.

The real estate industry has been struggling with demand and supply imbalances, but the Budget 2024 has brought new hope to the sector. With a focus on urbanisation, infrastructure development, and women's empowerment, the government has signaled its commitment to driving growth in the sector.

Information
CREDAI West Bengal is a leading real estate developers' association in West Bengal, while Knight Frank India is a global real estate consultancy firm. Bengal Shristi Infrastructure Development Ltd. is a leading infrastructure development company in West Bengal, and India Sotheby's International Realty is a luxury real estate consultancy firm. JLL is a global real estate services firm.

CREDAI West Bengal is a leading real estate developers' association in West Bengal, dedicated to promoting the interests of real estate developers in the region. Knight Frank India is a global real estate consultancy firm that provides a range of services, including research, valuation, and transaction advisory. Bengal Shristi Infrastructure Development Ltd. is a leading infrastructure development company in West Bengal, focused on developing infrastructure projects across the state. India Sotheby's International Realty is a luxury real estate consultancy firm that provides a range of services, including property advisory and transaction management. JLL is a global real estate services firm that provides a range of services, including research, valuation, and transaction advisory.