What the Realty bosses feel about the Union Budget 2024-2025

Sankey Prasad, Chairman & MD, India & CMD - Middle East, Colliers Project Leaders, said “In addition to infrastructure development, the Union Budget has focused on employment generation, skilling, manufacturing augmentation, innovation and inclusive growth. On the real estate front, additional allocations under PMAY scheme, rationalisation of stamp duty charges for women-home buyers and focus on rental housing catering to industrial workers bodes well for the residential segment. Interestingly, bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India. Announcements related to industrial parks and corridors can potentially add vigour to the industrial & warehousing segment. Moreover, increase in disposable income under the new tax regime through additional deductions and slab revisions can amplify investments across real estate asset classes including REITs.

Badal Yagnik, Chief Executive Officer, Colliers India, said, “The Budget clearly defines the nine priority areas revolving around employment & upskilling, inclusive growth, augmentation in manufacturing, urban development, infrastructure growth, innovation and newer reforms. This lays the foundation for future budgets and envisions India’s growth trajectory over the next five years. The capital outlay of over Rs11 lakh crore for infrastructure at 3.4 per cent of GDP will boost equitable real estate growth in Tier I and II cities.

Housing continues to be one of the focus areas in the budgetary announcements. Under the PMAY scheme, Rs10 lakh crore has been allocated for the development of 3 crore additional houses. This will drive construction in the urban and rural areas with cascading effect on allied sectors. PPP financing and VGF for rental housing will help in meeting the housing needs of the poor while reducing the burden of the government through the traditional route

Shrinivas Rao, FRICS, CEO, Vestian said, “Announcements under the Budget are a step towards achieving the goal of Vikshit Bharat by 2047. The budget continued its focus on infrastructure development and provided impetus to employment generation with an aim to bridge the skill gap and boost the Indian economy.”

“The budget witnessed several announcements which may boost demand for real estate assets - A budget allocation of Rs10 lakh crore to develop one crore urban houses under PMAY, improved transparency in rental housing markets, digitisation of land records, and reduction in stamp duty. Additionally, sustainability gained momentum through the government’s push for clean energy, which may also be reflected in the real estate sector. All in all, the focus on infrastructure development will directly or indirectly have a positive impact on the real estate sector too,” Rao added

Amit Goyal, Managing Director, India Sotheby's International Realty, said, “The Budget strikes a delicate balance: prioritising infrastructure, job creation, and MSMEs while maintaining fiscal discipline. The commitment to reduce the deficit to 4.5 per cent and below over the next few years by FM Nirmala Sitharaman, is commendable. This ensures long-term economic stability, high credit rating and FDI inflows for India. In a young nation with a large youth population (40 per cent under 25!), skilling and job creation are crucial.

For real estate transaction, bringing down the long-term capital gains tax from 20 per cent to 12.5 per cent is a welcome step, even if it comes with removal of indexation benefits. This will encourage more liquidity in property transactions. Higher uniformity in long term capital gains tax across different asset classes was a long standing ask of investors

Sunil Dewali, Co-CEO of Andromeda Sales & Distribution Pvt Ltd, parent company of Andromeda Realty Advisors, said “The Finance Minister's announcement to make housing more affordable, with a ₹2.2 lakh crore push under the PM Awas Yojana-Urban, is a major step forward. Addressing the needs of one crore poor and middle-class families with a ₹10 lakh crore investment over five years, it reflects a robust approach to urban development. Encouraging states to reduce high stamp duty rates, especially for women buyers, is progressive. Digitising land records, GIS mapping, and urban housing initiatives, alongside workforce skilling, will boost the real estate sector. Significant infrastructure investments and simplified FDI rules will drive private investment, fostering economic growth and stability