The Dynamic Effects of the Productive Union Budget 2024-25 on Real Estate of India

For a country like India, Union Budget is the perfect roadmap that can lead to perfect economic activities for the whole year. Union Budget focuses on economic growth, infrastructure development, and fiscal policies which plays a crucial role in shaping the real estate landscape of India. On 23^rd July, Union Finance Minister  Nirmala Sitharaman declared various announcements which received mixed responses.

The union budget has thrown light on diverse sectors of economy with a special attention on the MSMEs, employment, skilling, youth, and the middle class. The budget also kept a sharp eye on the various priorities for generating ample opportunities for all and it works as a keen guide for specific actions and reforms required to realize the goal of ‘Viksit Bharat’. 

Key Components of Budget Focusing on Real Estate & Construction

Urban Development

For a populous country like India, developing a proper cityscape in a professional and scientific way is of paramount importance. A sound Urban Development Planning includes skillful physical plans and development regulations. Urban Planning is a combined method of social, economic, environmental, and constructive efforts which can elevate the quality of life for  urban dwelling to a good, healthy place to live, work, and to move around.

In this Union Budget 2024, Nirmala Sitharaman strengthened PM Awas Yojana (Urban 2.0) by injecting Rs.10 lakh crore and pledged to build more three crore houses to accommodate more than 1 crore urban poor and middle class families under the scheme of PMAY-U, PMAY-R. To encourage the real estate stakeholders, Sitharaman promised to construct and redevelop industrial parks, corridors, infrastructure, and vegetable supply chains near urban consumption centers. Further to add, 12 new industrial parks will be constructed in and around 100 cities of India.

Talking about PMAY scheme, Managing Director of Krisumi Corporation Mohit Jain mentioned, “Urban centers, being the drivers of growth, saw major allocation and attention in the Union Budget 2024. More homes under PMAY (U), transit development, creative redevelopment of cities, industrial parks, rental housing for industrial workers, digitization of land records, development of industrial parks and call for moderation in stamp duty, particularly for women buyers are some of the measures that will usher Indian cities towards the path of modernization, enhancing livability and enabling them as growth and employment centers. The real estate sector, as partners in this development, will play a major role in contributing towards the government’s urban vision. The increase in Standard Deduction of Rs. 25,000 to Rs.75,000 will be a sentiment booster for the sector, which is on a high and expected to perform well in the near future”.

Nearly an amount of Rs.15000 crore was allocated in order to develop Andhra Pradesh’s newly formed capital Amravati.