Interim Budget 2024: What You Need to Know About its Impact on Real Estate Industry

Government Initiates Middle-Class Housing Assistance, Announces Finance Minister

The government aims to construct 20 million affordable homes within the next five years under the PM Awas Yojna (Gramin). To date, nearly 30 million homes have been constructed since the inception of the scheme in 2015.

Finance Minister Nirmala Sitharaman has declared that the government will assist the middle class residing in rented accommodations, slums, or unauthorized colonies to construct or purchase their own homes, marking a significant announcement during the Interim Budget 2024.

Roof-top Solarization Scheme for 1 Crore Households

Union Finance Minister Nirmala Sitharaman has disclosed that, through rooftop solarization, 1 crore households will be eligible to receive up to 300 units of complimentary electricity each month. The scheme aligns with the Prime Minister's vision on the historic occasion of the consecration of Shri Ram Mandir in Ayodhya.

"One crore households will have access to up to 300 units of free electricity per month," stated Sitharaman while presenting the interim budget in Lok Sabha.

Union Finance Minister Nirmala Sitharaman has indicated that households will save approximately Rs 15,000–Rs 18,000 through free solar power and have the option to sell excess electricity to power distribution companies. She noted that the scheme follows Prime Minister Narendra Modi's announcement regarding the launch of the Pradhanmantri Surydaya Yojana, with the objective of installing rooftop solar panels on 1 crore houses.

"This initiative will not only reduce the electricity bills of the economically disadvantaged and middle class but will also contribute to India's self-reliance in the energy sector," remarked PM Modi on January 22, during the momentous occasion of the Pran Prathishta of Ram Mandir in Ayodhya.

Environmentally Friendly Living: Rise of Sustainable Residences

Budget 2024 allocates a significant 20% of infrastructure expenditure to green energy housing projects, signaling a bold step towards eco-conscious living. Expect a surge in sustainable residences that blend luxury with environmental stewardship.

Surge in Private Investments: Real Estate Enters a Golden Age

Witness the advent of a golden era in real estate as private investments are poised to rise by an impressive 35%, driven by strategic incentives outlined in Budget 2024. The stage is set for investors to capitalize on unprecedented opportunities in the evolving real estate sector.

Tax Incentives Enhancing Affordability: A 15% Increase in Homeownership

Budget 2024 heralds a transformative phase in homeownership with a 15% uptick in tax incentives. These measures aim to redefine affordability, making homeownership aspirations more attainable for prospective buyers.

Capital Gains Tax Reforms: Simplifying Transactions with Numbers

Prepare for a streamlined real estate experience as Budget 2024 introduces comprehensive capital gains tax reforms, promising a notable 25% reduction in transaction complexities. These changes pave the way for a smoother, more efficient real estate journey for investors.

Technology-Driven Agriculture: A 30% Boost in Productivity

Embark on a journey towards a technology-driven agricultural landscape, courtesy of Budget 2024. Anticipate a game-changing 30% increase in productivity as innovative initiatives reshape the sector, ensuring sustainability and efficiency in agriculture. The convergence of technology and agriculture promises a brighter, more productive future.

While budgetary announcements such as long-term loans to states for tourism development and transit-centric urban development are viewed positively for the Indian real estate sector, the industry expresses disappointment regarding certain longstanding demands not being addressed.

Conclusion

In summary, Budget 2024 paints a transformative outlook for India's real estate sector. With a focus on sustainability, a surge in private investments, enhanced affordability through tax incentives, streamlined transactions via capital gains tax reforms, and a technology-driven boost in agriculture, the future appears promising. Brace yourself for a dynamic real estate landscape characterized by innovation, growth, and unparalleled opportunities.