Finance Minister Nirmala Sitharaman's presentation of the 2024 Union Budget introduces a range of game-changing measures that are set to have far-reaching effects on the real estate domain. The initiatives, which include affordable housing opportunities as well as infrastructure and urban development plans, offer key advantages crucial for an industry in need of a boost.
The Affordable housing scheme PM Awas Yojana will be expected to fulfill the dream of 1 crore poor and middle-class families. This significant scheme is expected to drive demand for affordable housing, providing a stimulus for construction activities and benefitting developers and construction companies engaged in the affordable housing segment. The newly launched budget 2024-25 has allocated Rs 2.2 lakh crore for urban housing over the next five years, which will uplift the urban infrastructure, and enrich the living conditions in cities, attracting more investments into the urban real estate market.
To meet the accommodation needs of industrial workers, the budget proposes the development of dormitory-style rental housing through a Public-Private Partnership (PPP) model. This initiative is designed to support industrial growth and stability in labor-intensive sectors, while also creating new opportunities for real estate developers focusing on rental and affordable housing.
The budget will incentivize states to reduce stamp duty for properties purchased by women. To promote the digitization of documents, land records in urban areas will be digitized with GIS mapping. Additionally, transit-oriented development plans for 14 major cities with populations over 3 million will encourage the creation of mixed-use properties around transit hubs.
The budget’s proposal to develop investment-ready “plug and play” industrial parks in or near 100 cities will attract industrial investments, leading to increased demand for industrial real estate.
The launch of Phase IV of the PM Gram Sadak Yojana in 25 rural habitations will enhance connectivity in rural areas, fostering rural development and making these regions more attractive for investments. The improved infrastructure is expected to boost real estate activity in these areas.
In the days to come, backed by the Union Budget, Real estate developers, investors, and stakeholders can expect increased opportunities and a supportive policy environment in the coming years.
Kamal Bali, President & MD - Volvo Group in India commented,“It is one of the most thoughtful, pragmatic and inclusive budgets, that addresses most sections of our society and economy. A growth oriented budget which continues to be large on infrastructure capex, and on schemes for skilling & employment generation, yet fiscally responsible with a good glide path, for controlled inflation & macroeconomic stability.”
Rajesh Khosla, CEO, AGI Greenpac, said, “The Union Budget 2024 presents a promising outlook for India’s manufacturing sector. Increased allocations for infrastructure and technology are significant steps towards solidifying India’s position as a global manufacturing hub.The focus on employment-linked skilling initiatives is particularly encouraging. By incentivizing job creation, the government is empowering young talent and fostering a more productive workforce.We are optimistic that these measures will create a robust manufacturing ecosystem and contribute to India's economic growth. AGI Greenpac is well-positioned to capitalize on these opportunities and further expand its operations.”
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