Interim budget reaction from real estate bigwigs
The announcement of 2 crore additional houses under PMAY-G is a pivotal stride in addressing the burgeoning housing needs
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Hyderabad: The unveiling of the Interim Budget 2024 has set the stage for an optimistic narrative within real estate circles, drawing accolades from prominent figures who recognize its potential to reshape the sector.
Mr. G Hari Babu, National President of NAREDCO, hailed the budget as a testament to the government's visionary approach, placing paramount importance on governance, development, and performance. At the forefront of Mr Babu's commendations lies the government's unwavering commitment to housing development through the Pradhan Mantri Awas Yojana - Gramin (PMAY-G). The announcement of an additional 2 crore houses stands as a commendable effort, demonstrating a dedicated approach to improving citizens' lives and effectively addressing persistent challenges in rural housing. This proactive step aligns seamlessly with the broader vision of fostering a progressive and inclusive India. A key highlight for Mr Babu was the introduction of a new scheme targeting the urban middle class. While appreciating this forward-looking initiative, he stressed the importance of a clear and comprehensive roadmap for the scheme. This emphasis on transparency and meticulous planning resonates with the sector's eagerness for well-defined strategies that can drive sustainable growth.
Expanding on this optimism, Mr. Piyush Lohia, Director of Lohia Developers (INDIA) Pvt Ltd, offered a nuanced perspective on the potential impact of the budget on the real estate landscape. He identified the announcement of 2 crore additional houses under PMAY-G as a pivotal stride in addressing the burgeoning housing needs. This move not only aligns with the escalating demand for affordable housing but also injects momentum into the growth trajectory of the real estate sector.
Despite the absence of alterations in tax slabs, Mr Lohia was quick to highlight the budget's fiscal prudence, notably the targeted fiscal deficit of 5.1% of GDP for the fiscal year 2025. This, according to him, not only signals a balanced fiscal approach but also serves as a stabilizing factor, instilling confidence in the economic trajectory. The inclusion of 1 crore households receiving 300 units of free electricity through the rooftop solar scheme was viewed as a laudable step towards fostering sustainable living, aligning with the global trend towards environmentally conscious practices.
Finance Minister Sitharaman's announcement of a 50 per cent increase in average real income emerged as a particularly positive aspect in Mr Lohia's analysis. This, he believes, is a promising indicator of enhanced purchasing power, potentially ushering in favourable dynamics for the real estate market. Moreover, the government's initiatives to fortify manufacturing and augment capital expenditure by 11.1 per cent to 11.11 lakh crores for 2025 are expected to expedite infrastructure development. This strategic increase in infrastructure spending is poised to catalyze overall economic prosperity and stoke demand for residential, commercial, and retail properties on a national scale.
Dr. Nitesh Kumar, MD & CEO of Emami Realty Ltd., echoed these positive sentiments, characterizing the budget as not just positive but also inclusive and balanced for a developed India. He particularly applauded the Finance Minister's announcement of a middle-class housing scheme, which extends the opportunity for residents of unapproved colonies, slums, and rented houses to buy or build their own homes, thereby facilitating easier homeownership. Underscoring the critical role of capital investment, Dr Kumar highlighted the government's consistent upward trajectory in capital investment outlays, reaching 11.11 lakh crores with an 11.1 per cent increase for the fourth consecutive year. This financial impetus, he contends, is poised to stimulate more investment and significantly contribute to the expansion of the country's infrastructure. It's a strategic move with far-reaching implications, as robust infrastructure is fundamental to a nation's growth, productivity enhancement, job creation, and the overall improvement of citizens' quality of life.
In summary, the Interim Budget 2024 has not only received positive reviews but has also instilled a sense of confidence and optimism within the real estate sector. The outlined measures are anticipated to play a pivotal role in fostering housing development, economic prosperity, and the overarching growth trajectory of the nation. As the sector eagerly anticipates the unfolding of these initiatives, the prevailing sentiment is one of anticipation and positivity, signalling a potential turning point for the real estate landscape in the country.
