Ranjit Naiknavare, President Credai Pune-Metro
Budget 2024 is an inclusive budget focused on the mission Vikasit Bharat 2047 with key focus areas of Inclusive development, manufacturing & MSME’s, Women & agriculture, Urban development, Energy security, Infrastructure, Innovation & next generation reforms. Hon FM has announced a long term investment of 10 lakh crore and subsequent affordable loan rates for PMAY 2.0 which will boost affordable housing and bridge the difference in demand and supply of affordable homes.
Transparent rental housing policy, boost for water supply & sewage for 100 cities, focus on TP schemes, TOD zones, infrastructure boost & simplification of GST is a welcome move. The Hon FM’s call to reduce stamp duties especially for women buyers in states which charge a higher stamp duty is appreciated.
The reduction of GST & basic custom duty (BCD) on steel will be a relief in the input costs provided the steel manufacturers pass on the benefit to the real estate industry.
The digitization of urban land records being one of the demands of the industry will greatly help us bring more transparency in transactions.
The increase of the standard deduction in income tax to INR 75,000 from INR 50,000 will put more money in hands of the home buyers enabling them to pay EMI’s earlier and close their loans
Credai had placed below as its main demands for the real estate sector on behalf of the home buyers, mainly being introduction of Credit guarantee schemes for affordable home loans, to change the affordable housing definitions to enable vast outreach especially in metro cities like Pune, Interest deduction for home buyers, reduction of long term capital gain taxes, employment generation and skilling, Urban infrastructure development funds & policy support for Environmental clearances for projects. While the majority of the demands have not been fulfilled in the budget, we would still say that overall it’s a good budget in the long term for development and putting more money in the hands of the home buyers.
Kapil Gandhi, MD Sigma One Universal
Real estate has seen a significant rise in prices over the past seven years due to the increased input costs including land and material costs. Data from the National Housing Bank reveals a 24% increase in housing rates in India since June 2018 alone. The industry was hoping for better reforms and benefits, however its an overall inclusive good budget with a fair focus on Infrastructure, Innovation, next generation reforms & urban development
The announcement of increase in the income tax standard deduction to 75,000 INR will put more money in the hands of the home buyer to enable payment of higher EMI’s.
The Hon FM’s focus on TP schemes, TOD zones, infrastructure boost & simplification of GST was much awaited and appreciated.
The most important announcement related to real estate seems to be the call to reduce stamp duties with benefits for women buyers in states which charge a higher stamp duty. We await the state governments action on the same and it will greatly be helpful if they reduce the stamp duty from 7% to 5% by waiving off the metro cess and LBT in Pune which will benefit homebuyers, especially the first time buyers majority of whom are in the age group of 25-35 years!
