Mumbai, 23rd July 2024: The Union Budget 2024-25 has garnered praise from various sectors, including the real estate industry. Prashant Sharma, President of NAREDCO Maharashtra, lauded the budget’s comprehensive approach towards job creation and boosting consumption, which he believes will have positive implications for the real estate sector.
“We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector,” said Sharma. “The Finance Minister’s announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of ₹2 lakh crore, and a significant provision of ₹1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties.”
Sharma highlighted the government’s commitment to making housing more affordable through the PM Awas Yojana-Urban. “The government’s commitment to making housing more affordable, with a ₹2.2 lakh crore push under the PM Awas Yojana-Urban, is a significant step forward. Addressing the housing needs of one crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years, reflects a robust and inclusive approach to urban development.”
He also praised the proposal to encourage states to moderate high stamp duty rates and consider further reductions for properties purchased by women. “The proposal to encourage states to moderate high stamp duty rates and consider further reductions for properties purchased by women is a progressive measure. Incorporating these as essential components of urban development schemes will promote greater inclusivity and accessibility in the housing market.”
Sharma commended the GST reforms, which he believes have eased compliance and reduced tax burdens, driving economic growth. “The GST reforms, which have eased compliance and reduced tax burdens, have been instrumental in driving economic growth. The proposed rationalization of the tax structure, coupled with the new tax regime changes, including the increased standard deduction, will further benefit the salaried class and boost disposable income, positively impacting housing demand.”
The budget also includes strategic moves to enhance urban infrastructure and support industrial growth. “The sanctioning of 12 industrial parks under the National Industrial Corridor Development Programme, the facilitation of rental housing with dormitory-type accommodation for industrial workers in PPP mode, and the formulation of transit-oriented development programmes for 14 large cities are strategic moves that will enhance urban infrastructure and support industrial growth,” Sharma stated.
Sharma anticipates a multiplier effect from the significant infrastructure investments outlined in the budget. “With significant infrastructure investments continuing over the next five years, including a provision of ₹11,11,111 crore for capex, we anticipate a multiplier effect that will drive private investment in infrastructure. The introduction of a market-based financing framework and simplified rules for Foreign Direct Investments will further facilitate economic growth and stability.”
In conclusion, Sharma expressed optimism about the budget’s impact on the real estate sector and the overall economy. “Overall, the Union Budget 2024-25 is a forward-looking and balanced approach towards Viksit Bharat that addresses key areas of employment, housing, urban development, and economic growth. We at NAREDCO Maharashtra look forward to the positive impact these measures will have on the real estate sector and the overall economy.”
