Budget & Realty: Industry Speak

Torbit - February 03, 2024 - - 0 |

Though the interim budget for the FY’25 presented by the Modi government is not a big bang budget, yet  it promises to be a positive budget where a big boost to infrastructure development and affordable housing,  paves the way for real estate growth. Torbit Realty presents the views of the cross-section of the real estate sector on the budget.

G Hari Babu, National President, Naredco

The budget holds significant implications for both real estate and infrastructure. With substantial allocation towards infrastructure and railway projects, the government has catalyzed the emergence of new realty hotspots. By incentivizing urban centres to prioritize sustainable planning , the budget shows the way for comprehensive urban development strategies. The revision of direct tax slabs promises to inject greater purchasing power for consumers. The government’s bullish stance on infrastructure translates to better roads , smoother logistics and ultimately happier homebuyers experiencing appreciating property values . Initiatives on PMAY-Gramin, will address housing needs, extending support to middle class, slum dwellers and renters alike.

Anuj Puri, Chairman, Anarock

The continued focus on infra upgrade and connectivity will benefit real estate not just in top cities but in Tier 2-3 cities as well. The significant announcement to construct 2 crore more rural houses will boost PM Awas Yojana. Further, the announcement to launch a scheme for housing for the middle-class, will check development of unauthorised colonies/slums and promote redevelopment. While focus on tourism will boost the hospitality sector, transit-oriented development will boost housing, especially in peripheral areas  and Tier 2-3 cities.  The budget did not directly address demands of the real estate sector like industry status, tax incentives for homebuyers, and higher allocation for affordable housing, yet the upcoming full-fledged budget may tspell out concrete measures in this regard.

Manoj Gaur, CMD, Gaursons and Chairman, Credai National & President, Credai NCR

Focusing on infrastructure development, this budget takes India’s growth story forward. As the government’s initiatives have propelled crores of people out of poverty, these people will fuel housing demand, benefiting real estate. Further, with no new taxes in the budget  and fast tracked economy and controlled inflation, will aid real estate growth.

Anshuman Magazine, Chairman & CEO India, South East Asia, Middle East & Africa, CBRE

Focused on infra development, the budget’s proposal to add 2 crore additional homes under the PM Awas Yojana-Gramin, over the next 5 years is likely to enable growth in the rural areas. Further, the announcement of housing for the middle class would propel the development of real estate and construction activity along with the allied sector. Emphasis on developing tourism will boost development in Tier 2& 3 cities   Infra connectivity boost with emphasis on development of airports will bolster real estate.

R Singh, Ashwinder  Co- Co-Chairman, CII, NR Committee for Real Estate  & CEO-Residential, Bhartiya Urban

It is a forward-looking budget and emphasis on affordable housing and infrastructure initiatives will ignite demand and unlock sector potential. The proposed Development Financial Institution adds critical financing dimensions. The budget sets the stage for robust growth, job creation, and a resilient infra eco-system.

Kalyan Chakrabarti, MD, Emaar India.

The budget is extremely positive and resonates well with the continuation of the PM Awas Yojana-Rural. The diverse housing needs across income segments has been a priority of the government and hopefully steps will be taken towards providing housing for the middle class for a robust  real estate sector. The focus on infra development  including tourism and transport bodes well for the economy and real estate.

Subodh Runwal, MD, Runwal Group

The budget holds significant implication for both real estate and infrastructure sectors. With substantial allocation towards infra and railway projects, , the government has catalysed the emergence of new realty hotspots. The incentivization of urban centres to prioritize sustainable planning, will pave  way for comprehensive urban development strategies. The revision of direct tax slabs promises to inject greater purchasing power  for consumers . The government’s bullish stance on infrastructure translates to better roads, smoother logistics and ultimately happier homebuyers experiencing appreciating property values.The initiative on PMAY-Gramin will address housing needs, extending support to middle class, slum dwellers and renters alike.

Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com

The budget presents the housing sector with a promising outlook for the future . Considering that India’s middle class is set to nearly double to 61 percent of the total population by 2047, the soon-to-be-launched housing scheme , aimed at supporting home ownership of the middle class , is poised to be a significant booster to the housing sector. Another critical driver of growth in the housing segment is the government’s  commitment to enhancing infrastructure and connectivity across the country, particularly  giving a boost to Tier 2-3 cities in the short to medium term.

Pradeep Aggarwal, Founder & Chairman, Signature Global India Limited

The housing initiative targeting middle-class renters will help them construct or buy homes.  The budgetary move is expected to revitalize mid and affordable housing. An additional favourable development in the form of the government’s unwavering focus on infra development along with   flagship mission of transforming India into ‘Viksit Bharat’ by 2047 , is poised to create a conducive environment for the real estate sector.

Sudeep Kumar Sinha, Partner, Deloitte India

The increase in capital outlay by 11.1 percent  demonstrates the government’s commitment to address infrastructure needs.  There has been a thrust to improve logistics efficiency and therefore dedicated corridors for ports connectivity , energy, cement , minerals and high traffic density is a critical step in that direction. The renewed focus on tourism infra and housing for the middle class is a significant step.

Sudhir Pai, CEO, Magicbricks

The focus to enhance economic, digital and social infrastructure together with advancement of the ‘Housing For All ‘ programme, will enhance the livability index and assist in promoting homeownership . From a supply perspective, tax breaks such as reduction in custom duties on GST, would have been beneficial in accelerating new supply. In the current landscape of decadal high demand and substantial increase in residential prices, such measures could have helped create a balance , crafting a sustainable long-term growth story.

Amit Goel, MD India,  Sotheby’s International Realty

The budget is both positive and encouraging with regard to robust demand for the real estate sector primarily in the high end and luxury segment. The focus on the  affordable housing scheme  for those   living on rent will aid overall growth of the real estate sector. Moreover with new financing and entrepreneur- friendly policies, , there will be increase in HNIs, leading to greater investment in real estate.

Salil Kumar, Director, Sales & Marketing , CRC Group

The Real estate  sector is expected to respond favourably to the budget. The 11 percent increase in the infrastructure sector will speed up growth. Since the government has announced stability in the income tax slabs, prospective buyers are expected to demonstrate continued interest in real estate with ample focus on ifra projects including metro and rapid rail.the enhanced connectivity would contribute to the overall development.

Dhaval Ajmera, Director, Ajmera Realty & Infra Ltd

The announcement of a housing scheme dedicated to middle class will empower the masses to shift to buying from renting, , thus elevating the overall living standard. Increased allocation for infrastructure development and First Develop India (FDI)initiative will further propel development and infrastructural growth, resulting in the emergence of new micro markets, boosting the housing demand.

Prateek Mittal, ED, Sushma Group

The housing provision for middle-class renters is poised to invigorate real estate development in Tier 2-3 cities. An increase in capex and a fillip to Gati Shakti will aid infra expansion. stimulating further growth in real estate sector. The Rs 1 lakh crore corpus for long-term low or interest-free loan  promises to propel innovation and boost commercial realty segment.

Tags: Budget

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