Union Budget 2024
Yesterday Financial Minister Sitharaman announced the Union Budget 2024.The budget did focus on the real estate sector when it came affordable housing, investment in infrastructure, and changes in stamp duties. Where the overall investment form the government seems robust.
Affordable Housing
Financial minister announced in the Union Budget the PM Awas Yojana-Urban 2.0. This program is set to fulfil the housing requirement of 1 crore poor and middle class families. This ambitious program is expected to drive demand for affordable housing and provide a stimulus for construction activates. In addition benefit developers as well as construction companies in the affordable housing segment. The Budget has allocated a substantial Rs. 2.2 crore for urban housing over the next five years. This increase in funding will expiate urban housing projects and improve urban infrastructure and will attract more investment in the urban real estate market.
Long-Term Interest-Free Loans and investment in Infrastructure
The budget also had provisions for Rs.1.5 lakh crore in long term interest free loans to states for infrastructure development that will focus on enhancing connectivity and amenities. This will positively impact the real estate markets and make regions more attractive for residential and commercial investment .
In addition to the interest free loans the budget proposed to develop investment ready “ plug and play” industrial parks in or near 100 cities. This will attract industrial investments leading to increase demand for industrial real estate. Overall this initiative supports the growth of ancillary services and residential development in these regions
Boost to Industrial and Urban Development
In addition to the above the development of an industrial node on Amritsar-Kolkata Industrial Corridor, which will include Gaya was a part of the budget. This is an important step in inspiring real estate development in these regions and will create demand for commercial and residential properties that will enhance connectivity and economic activity. Also there are planned developments that are transit-oriented for 14 large cities with populations above 30 lakh. This will encourage the development of mixed-use properties around the transit hubs, leading to increased real estate activity and better urban planning.
Focus on Industrial Workers
In a move to address the housing needs of industrial workers it is possessed that rental housing with dorm like accommodations be created in PPP (Public-Private Partnership) mode. This initiative is expected to promote industrial growth and stability in labor intensive sector. This will also create new opportunities for real estate developers who specialize in rental and affordable housing.
Stamp Duties
When purchasing a home there is cost for stamp duties which can make buying a property that more expensive. The Financial Minister while presenting the budget urged all states to reduce the stamp duties especially for women and that this reform will be made as essential part of urban development schemes. Currently there is 1% reduction in the stamp duty for women who are buying properties.
