Budget 2024-25: Realtors celebrate boost to urban development

Sumedha Sharma

Gurugram, July 23

The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman has left the real estate sector elated as urban development was outlined as one of the nine priorities. The government has also extended support for affordable housing, which is predicted to give a renewed push to the segment.

The allocation of Rs 10 lakh crore for the development of 3 crore additional houses under the Pradhan Mantri Awas Yojana is expected to give a push to the construction market in the NCR and open new avenues in untapped rural pockets, resulting in a cascading effect on allied sectors.

Boman Irani, president, Confederation of Real Estate Developers’ Associations of India (CREDAI), hailed the Budget for “allocations to all key areas crucial for sustaining India’s growth story”.

He highlighted that under the PM Awas Yojana Urban 2.0, the housing needs of one crore poor and middle-class families would be addressed with an allocation of Rs 10 lakh crore. The sum would include the central assistance of Rs 2.2 lakh crore in the next five years.

“The Finance Minister also announced allocations for the completion of three crore houses in rural and urban areas to enhance the ‘ease of living’ and dignity for crores of Indians. These announcements reiterate the government’s focus on housing for all,” Irani added.

Realtors stated that the rationalisation of stamp duty across states with an emphasis on women homebuyers would boost the sentiment of home buyers across major cities of the country.

G Hari Babu, president, National Real Estate Development Council (NAREDCO), opined that the Budget provisions suggest potential improvements in the infrastructure and amenities in cities, which could increase property values and attract more investments.

“The introduction of rental housing with dormitory-type accommodation for industrial workers in Public-Private Partnership (PPP) mode with the Viability Gap Funding (VGF) support is seen as an innovative approach to address housing needs in industrial areas. This could open up new opportunities for developers in the affordable housing segment,” said NAREDCO president.

Despite push, major realty stocks fall

• Despite budgetary allocation for housing, realty sector emerged as one of the top losers after Finance Minister Nirmala Sitharaman presented the Union Budget on Tuesday.
• All 10 Nifty constituents, including DLF, Godrej Properties and Prestige Estates, suffered losses between 2-6%.