Real Estate Industry: Happy or Sad? Who said what?

The Union Budget 2024-25 made several announcements and reforms to spur growth in the economy. Some sectors saw positive sentiments being built up after the budget while others are still assessing how things will unfold for them. The real estate industry was not very happy with indexation removal on selling older properties. Some of the realty stocks saw major corrections in the market today post-budget announcements. What are experts saying about the budget? Let’s have a look at it!

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Akshat Seth, Managing Director & CEO at HIL Ltd.

We welcome the government’s strong commitment to inclusive development in this year’s budget with the vision of a “Viksit Bharat”. The focus on nine priority areas and employment will entail sustained efforts to generate ample opportunities for all. The government’s decision to maintain the interim capital expenditure target of ₹11.11 lakh crore — the highest allocation ever at 3.4% of GDP — reflects the sustained reliance on infrastructure development to drive economic growth. Additionally, the allocation of ₹2.66 lakh crore for rural development, including rural infrastructure projects, will play a remarkable role in transforming the rural economy. The women-first initiatives for enhancing women’s participation in the labour force are also a welcome move. This focus on innovation, infrastructure, and inclusive development will ensure sustainable progress across the nation and also ensure that the impact reaches the common man.

Tejas Patil, Founder Arbour Investments

The Union Budget 2024 has laid down a comprehensive framework that can significantly benefit the real estate sector. The increased standard deduction from ₹50,000 to ₹75,000 and revised tax slabs under the new tax regime provide more disposable income to individuals, potentially increasing their capacity to invest in real estate. The abolition of the angel tax and simplification of FDI rules are also positive steps, as they can attract more investments into the sector, fostering growth and development. The allocation of ₹2.66 lakh crore for rural development and housing is a welcome move that will drive the expansion of housing projects, particularly in underserved areas.

Moreover, the Budget introduces taxation on debt mutual funds, unlisted bonds, debentures, and market-linked debentures at slab rates, which could attract more investments into high-yield debt instruments. This change is likely to channel more capital into unlisted Non-Convertible Debentures (NCDs) offering high yields, benefiting both investors seeking better returns and issuers needing capital. The Budget’s focus on employment and skilling, with schemes aimed at providing internships and job opportunities to one crore youth, indirectly supports the real estate sector by boosting overall economic growth and consumer confidence. The proposed initiatives for urban development, including the development of transit-oriented projects in 14 large cities and affordable rental housing, address critical infrastructure needs and can lead to the creation of more vibrant and sustainable urban environments. The emphasis on modernizing the IBC process with additional tribunals and an integrated tech platform will also help in faster resolution of insolvency cases, ensuring better liquidity and stability in the real estate market. Additionally, the digitization of land records will reduce disputes, enhance transparency, and expedite the land acquisition process, further benefiting the real estate sector. The comprehensive rural and infrastructure development plans outlined in the budget are poised to boost allied industries, creating a ripple effect that will spur economic growth and job creation.

Sanjay Kumar, CEO, Geospatial World

The Union Budget 2024-25 outlines a forward-looking and ambitious roadmap for India’s growth, innovation, citizen welfare, women empowerment, skill development, and social inclusion.

The country is set on the trajectory of resilient growth through consistent focus on land records digitalization, agro innovation, energy transition and security, rural empowerment, urban regeneration, and strengthening the vital manufacturing sector. Geospatial plays an indispensable role across all these pillars of citizen participation, social development, and engines of economic transformation.

The budgetary outlay has enhanced the role and scope of geospatial in India’s developmental journey.

Geospatial technology and space applications will play an integral role in harnessing the country’s untapped potential, driving equitable socio-economic development throughout the vast and diverse geographic terrain, boosting connectivity, creating opportunities for young entrepreneurs, and bridging the various divides. Geospatial and its convergence with next-gen technologies will be critical towards achieving the milestone of Viksit Bharat by 2047. It will also accelerate automation, leading to more impactful grassroot solutions and newer business paradigms. INR 1,000 crore outlay for a Space Economy Venture Capital Fund is a laudable step in the right direction. Through investment, hand-holding, market access, state-of-the-art technology development, and start up incubation, we can foster a conducive New Space ecosystem that will turn India into a global innovation and R&D hub for NewSpace, catapulting the country to greater heights, and diversifying our space offerings.

Saurabh Rai, CEO of Arahas

The budget outlines a comprehensive plan for modernizing land records, which includes the digitization of cadastral maps and GIS mapping of urban land records. This initiative will not only streamline land transactions but also enhance transparency and efficiency in land management. The digitization of land records with GIS mapping is a game-changer for improving accuracy and accessibility. It provides a solid foundation for advanced geospatial analytics, which can leverage to offer innovative solutions in urban planning and resource management.

The Indian government’s commitment to the space economy is evident with the proposal to set up a venture capital fund of ₹1,000 crore. This fund is designed to support private sector-driven research and innovation at a commercial scale. The establishment of a venture capital fund for the space economy opens new avenues for collaboration and innovation. Arahas is excited about the possibilities this creates for developing advanced space technologies and contributing to India’s growing presence in space exploration.

In the realm of agriculture, the budget proposes a digital crop survey in 400 districts, alongside the issuance of Jan Samarth-based Kisan Credit Cards. This initiative is aimed at improving data governance and resource allocation in agriculture. The introduction of the Unique Land Parcel Identification Number (Bhu-Aadhaar) for all lands, along with the survey of map sub-divisions as per current ownership, is a significant step towards modernizing land records. This initiative will simplify land ownership verification and transactions. Modernizing land records through Bhu-Aadhaar and digital surveys will enhance land management efficiency and reduce administrative bottlenecks.

Mr. Ankit Kumar, CEO, Skye Air Mobility

The budget presents big opportunities in agriculture, infrastructure, and deep tech sectors. The focus on boosting agricultural productivity is likely to drive the use of drones for crop surveying, precision spraying, and monitoring. This could transform farming, increase yields, and reduce resource waste.

The major infrastructure investment, especially in Northeast states, opens new doors for drone applications. Drone logistics are expected to play a key role in improving access to healthcare, e-commerce, and other essential services in remote areas. This aligns with the government’s goal of inclusive development and could greatly enhance the quality of life in hard-to-reach regions.

The budget’s emphasis on the deep tech sector is seen as a boost for innovation in drone technology. This could lead to advancements in AI, machine learning, and IoT integration with drones, enhancing their capabilities and expanding their uses. One of the most exciting prospects is using drones for transporting perishable goods. The industry expects that drone technology could cut perishable wastage by over 50%, tackling a major issue in India’s agricultural supply chain.

Mr. Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited

We welcome the Government’s consistent approach towards Fiscal consolidation, supporting Capex in Infrastructure by reconfirming the allocation of Rs.11.11 lakh crore in the Budget as also additional allocations towards improving Urban and Rural Infrastructure. We also welcome the Government’s focus on employment generation, skilling, Woman empowerment, MSMEs and climate change mitigation as well as their encouragement to the States to carry out land and labour reforms and improve Ease of doing Business further. We believe this Budget paves the way for the next generation of reforms which we are confident will lead India to its deserved place of being Viksit Bharat.

Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd.

The proposed Union Budget clearly showcases the government’s vision in making housing for all a success with PMAY 2.0. The proposed allocation of 3 crore additional houses with 2 crore in rural, tier 3 & 4 and 1 crore in urban areas will help in fulfilling the dreams of home ownership for many. The government has further reiterated its priority on urban development through two major announcements – a) The investment of Rs. 10 lakh crore that will also include a central assistance of Rs. 2.2 lakh crore and b) Encouraging the state governments charging high stamp duties to lower their stamp duty rates for all and further lowering duties for properties purchased by women. In addition, the proposal to provide interest subsidy to facilitate loans at affordable rates will also boost home ownership. I would also like to lay emphasis on the land centric initiatives that government has taken such as the land record digitalisation and unique land parcel identification number in tier 2, 3 & 4. This will be a big boon for the affordable housing finance sector as it will help in resolving the challenges faced by the industry during property identification especially in the hinterland.

Mr. Monu Ratra, ED and CEO, IIFL Home Finance Limited

We, at IIFL Home Finance Ltd., appreciate the visionary measures unveiled in the Union Budget 2024-25 today. It’s a very inclusive budget which will enable employment generation, boost the MSME sector, enhance agricultural outputs, and provide the much-required flip to the housing industry at large. With initiatives such as doubling the loan limit under the MUDRA scheme to ₹20 lahks from ₹10 lahks, proposing a reduction in stamp duty on property purchased by women, and pushing a PMAY (Pradhan Mantri Awas Yojana) outlay of ₹ 2.2 lacs Cr. shall enhance the ability of the first time home buyer with increased income and cheaper credit.

The commitment to construct an additional 3 crore houses under the PMAY 2.0, spanning across rural and urban sectors, is a game-changing initiative that will catalyze growth throughout the housing finance ecosystem. These budgetary allocations, especially the emphasis on green housing and solar integration, underscore the government’s unwavering dedication to ‘Housing for All’.

With our recent past expansion within the tier 2,3 and 4 towns augurs very well with the key announcements made by the honourable finance minister. As a leading affordable housing finance provider, we are poised to leverage this opportunity. With cutting-edge technology at our disposal, IIFL Home Finance Ltd. is steadfast in our commitment to translating these initiatives into tangible realities. We are dedicated to ensuring financial inclusion and enabling first time home buyers of the country.