Union Budget will boost real estate sector: Credai Hyd

Hyderabad: CREDAI Hyderabad, the apex body of real estate developers in Hyderabad welcomed the proposals, put forward by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024, aimed at bolstering the real estate sector and fostering inclusive growth in the region. Expressing his optimism about the budget proposal, president of CREDAI Hyderabad, V Rajashekhar Reddy, said that the focus on affordable housing as a part of PM Awas Yojna 2.0 to develop one crore homes for the urban poor and middle class families with an investment outlay of Rs 10 lakh crore, will provide an impetus to the real estate sector.

He also highlighted the aligned efforts of Telangana government with the Union Budget initiatives, creating a synergistic effect that will strengthen the real estate market in the State. “Investments in infrastructure, urban planning, and digitization of land records are crucial steps towards enhancing the real estate sector in Hyderabad. We believe that these measures will not only boost the sectors contribution to the economy but also address the housing needs of millions,” Reddy said. B Jagannath Rao, General Secretary, CREDAI Hyderabad, pointed out that the reduction of Capital Gains tax on real estate properties from 20 per cent to 12.5 per cent is a significant change. This measure will likely stimulate investment in the real estate sector, boost real estate transactions, and improve returns for investors.

Rao further said that the indexation benefits for properties held before 2001 have been preserved (grandfathered). This allows the valuation of these properties to be adjusted for inflation up to the year 2001, when Capital Gains tax is calculated. The removal of indexation benefits for calculating capital gains tax on real estate will not affect properties held before 2001. These properties will continue to enjoy the indexation benefits, he added.

The budget also outlines capital investment for economic growth at the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor. This development will benefit the Hyderabad region and is aligned with the revival of the ITIR policy pursued by the State government, the General Secretary noted.

CREDAI Hyderabad is hoping to find more details in the fine print about tax sops that will boost affordable housing. The organisation said it is looking forward for potential initiatives that could further support affordable housing.