Top realtors hail Interim Budget as 'inclusive growth oriented & visionary'

MUMBAI: Top realty developers and builders here on Thursday have lauded the Interim Budget 2024-2025 as 'visionary' and 'inclusive growth oriented' with sustainable development intended to transform India.

NAREDCO Maharashtra President Sandeep Runwal said the commitment to PM Awas Yojana Gramin with a target of constructing 2 crore additional houses, continues the government's focus on rural development.

"Achieving the milestone of 3 crore houses under the rural housing scheme and setting an ambitious target for the next 5 years reflects a significant investment in infrastructure development that addresses a basic need -- housing," said Runwal.

He also lauded the announcement of a new housing scheme for the middle class aimed at addressing the housing needs of those living in substandard conditions like slums and chawls or those burdened by rent. By facilitating home ownership, the government is not only looking to improve living standards but also to stimulate the real estate sector and associated industries, said Runwal.

Vice-President, CREDAI-MCHI Pritam Chivukula, who is Director, Tridhaatu Realty, said the budget boosts eco-friendly real estate, and matching market expectations while promoting an atmosphere conducive to economic growth.

"The government's dedication to infrastructure development is demonstrated by its emphasis on supporting worthy members of the middle class, particularly those living in slums or leased housing. This initiative is designed to facilitate the purchase or construction of their own homes, and the rooftop solar project to give free power to one crore families are excellent initiatives," said Chivukula.

The budget's emphasis on green initiatives, bio-manufacturing, and blue economy activities is expected to have a substantial influence on real estate markets.

Budget Highlights:

The promotion of sustainable alternatives such as biodegradable polymers and bio-agri-inputs creates opportunities for environmentally aware real estate construction, he said. Hiranandani Group Chairman Dr Niranjan Hiranandani, and NAREDCO Chairman, said that Finance Minister Nirmala Sitharaman has presented an integrated and equitable growth budget outlay encompassing significant social reforms, enhancing economic growth value chain, emphasize of sunrise sectors and impetus to urban & rural housing with mega infrastructure projection.

"The enhancement in infrastructure outlay by 11 per cent will bode well for firming up the growth of residential, commercial and industrial real estate asset classes across the geographies. The augmentation of multi-modal corridor connectivity with new railway corridors, and doubling of airports and ports corridors will have a multiplier effect on the real estate landscape," said Dr. Hiranandani. Siddha Group Director Samyak Jain, said the budget's continued focus on infrastructural upgrades is a strategic move.

By investing in infrastructure, the government is not only enhancing the country's physical capabilities but also indirectly boosting the real estate sector.

Key are the proposals like a new scheme to aid the middle class in acquiring or building their own homes, targeting those living in slums, chawls, or rented houses, this scheme could be a crucial step towards inclusive development and addressing the urban housing shortage.

"It demonstrates the government's recognition of the housing challenges faced by a significant section of society and its commitment to ensuring housing for all. This scheme, once effectively implemented, will have far-reaching impacts on social stability, urban development, and quality of life," said Jain.

NIDAR Group Founder Darshan Hiranandani, termed it as a landmark budget promising a sustainable growth roadmap that includes free solar electricity, an affordable housing program for the middle class, and EV charging infrastructure along with an emphasis on artificial intelligence (AI).

Shapoorji Pallonji Real Estate Managing Director & CEO Venkatesh Gopalakrishnan, feels that government has demonstrated a steadfast commitment to fortifying the real estate landscape in the Interim Budget, particularly by prioritising the housing sector with a sharp focus on the middle-class demographic, and the target of housing for all.

"While acknowledging these commendable strides, we believe that further catalysing growth in the real estate sector could have been facilitated through measures such as a reduction in customs duties or GST, enabling developers to expedite the completion of under-construction properties and boost housing supply," said Gopalakrishnan.

Ashwin Sheth Group's Chairman Ashwin Sheth patted the 'strategic direction' in the budget, especially the focus on reinforcing the affordable housing sector.

"The allocation of 70 per cent of PMAY houses to women in rural areas is of special significance and will go a long way towards providing secure living spaces and advancing women empowerment. The progress in the implementation of PM Awas Yojana (Grameen), approaching the target of three crore houses, with a commitment to take up construction of two crore additional houses over the next five years, will help meet the growing demand for rural housing," said Sheth.

Embassy Group COO Aditya Virwani said the scheme to facilitate home ownership for deserving sections of the middle class is a commendable and addresses a crucial need for our young population but also propels the housing sector into a new era of growth, fosters inclusivity, and ensures that homeownership becomes a reality for a larger section of our society.

"We also hope for continued support, including reduced home loan rates, favourable tax policies, and incentives for sustainability. These measures will be crucial in fostering an environment conducive to the growth of the real estate sector and contributing to the larger vision of India becoming a $7 trillion economy," urged Virwani.

Edelweiss Alternatives President and Head of Real Assets Subahoo Chordia, said the budget is a further demonstration of the sustained government support to the infrastructure sector, evident in an increase of over 11 per cent in allocation.

"Initiatives such as the development of multi-modal connectivity, a renewed emphasis on advancing solar and wind energy technologies, including offshore wind, and the improvement of railway infrastructure are poised to fuel economic growth. The backing of sustainable technologies, including electric vehicles and charging infrastructure, bodes well for a cleaner future. In all, the budget is expected to lead to a sustained growth of the economy," said Chordia.

Satellite Developers' Vice-President M & CRM Himanshu Jain, said the budget is not a populist but a visionary one.

It continues with the government's commitment to an inclusive growth and sustainable development policy.

"The move to set up a Rs 1 lakh-crore corpus for tech savvy youth from the private sector with low or nil interest free loans will create a huge demand for commercial properties and give a major boost to the start-up business as well," he pointed out.

However, Jain said there is no mention of raising the tax rebate threshold which would offer additional tax benefits to first time home buyers in the affordable housing segment.