In the interim budget for the real estate sector of 2024, the government has outlined several measures aimed at revitalising and rejuvenating the industry, which has faced numerous challenges in recent years. Recognising the crucial role that the real estate sector plays in driving economic growth, employment generation, and infrastructure development, the budget focuses on addressing key issues and providing impetus for growth.
One of the key highlights of the interim budget is the allocation of significant funds towards affordable housing initiatives. The government aims to accelerate the pace of affordable housing construction across the country, with a particular focus on urban areas where housing demand is high. This includes the provision of subsidies, incentives, and tax benefits to both developers and homebuyers to stimulate investment and promote homeownership. Aakash Patel, Director, Atul Projects India Private Limited said “the Interim Budget for 2024-25, as outlined by Finance Minister Nirmala Sitharaman, offers a mix of continuity and new initiatives, reflecting a blend of optimism and practical considerations in the face of India’s current economic landscape.”
Affordable housing
In addition to affordable housing, the budget also emphasises infrastructure development to support the real estate sector. This includes investments in transport networks, utilities, and amenities to enhance connectivity and livability in urban and peri-urban areas. By improving infrastructure, the government aims to unlock the potential of underdeveloped regions and create opportunities for real estate development.
The interim budget includes measures to address regulatory challenges and streamline approval processes for real estate projects. This includes the simplification of land acquisition procedures, faster environmental clearances, and the implementation of single-window clearance mechanisms to reduce bureaucratic red tape and expedite project execution.
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory said “the massive budget of Rs 11.11 lakh crores set out for infrastructure in FY25 will also help the real estate market. We look forward to actively contributing to the real estate industry’s growth and development under the enabling policies by offering our developer partners insightful advice.” To promote foreign investment in the real estate sector, the government has announced relaxations in foreign direct investment (FDI) norms and introduced incentives for foreign investors. This is expected to attract capital inflows into the sector, foster technology transfer, and stimulate economic growth.
The budget introduces measures to promote sustainable and green building practices, including incentives for energy-efficient construction and renewable energy integration. By encouraging environmentally friendly development, the government aims to address climate change concerns and create healthier, more resilient communities.
For middle-class people
The measures the government has put in place to encourage middle-class occupants of chawls, unauthorised colonies, slums, and rental properties to become homeowners demonstrate its commitment to supporting the real estate industry, Agarwal added.
The interim budget for the real estate sector in 2024 aims to provide a comprehensive framework for sustainable growth and development. Through targeted interventions, incentives, and regulatory reforms, the government seeks to catalyze investment, create employment opportunities, and address the housing needs of millions of citizens across the country.