Real Estate Industry Reacts Positively to Union Budget 2024: Insights from Ranjit Naiknavare, President, Credai Pune-Metro
Pune, 23rd July 2024: The Union Budget 2024 has garnered positive reactions from the real estate industry, with key figures praising its inclusive approach and long-term vision. Ranjit Naiknavare, President of Credai Pune-Metro, commended the budget for its focus on the mission Vikasit Bharat 2047, highlighting its emphasis on inclusive development, manufacturing, MSMEs, women, agriculture, urban development, energy security, infrastructure, innovation, and next-generation reforms.
“Budget 2024 is an inclusive budget focused on the mission Vikasit Bharat 2047 with key focus areas of inclusive development, manufacturing and MSMEs, women and agriculture, urban development, energy security, infrastructure, innovation, and next-generation reforms,” said Naiknavare. “Hon FM has announced a long-term investment of ₹10 lakh crore and subsequent affordable loan rates for PMAY 2.0, which will boost affordable housing and bridge the difference in demand and supply of affordable homes.”
Naiknavare appreciated several measures announced in the budget that directly impact the real estate sector. “Transparent rental housing policy, boost for water supply and sewage for 100 cities, focus on TP schemes, TOD zones, infrastructure boost, and simplification of GST is a welcome move. The Hon FM’s call to reduce stamp duties, especially for women buyers in states which charge a higher stamp duty, is appreciated,” he noted.
He also highlighted the relief provided by the reduction of GST and basic customs duty (BCD) on steel, which will lower input costs for the real estate industry. “The reduction of GST and basic customs duty (BCD) on steel will be a relief in the input costs provided the steel manufacturers pass on the benefit to the real estate industry. The digitization of urban land records, being one of the demands of the industry, will greatly help us bring more transparency in transactions,” Naiknavare stated.
The increase in the standard deduction in income tax was another positive aspect of the budget, according to Naiknavare. “The increase of the standard deduction in income tax to ₹75,000 from ₹50,000 will put more money in the hands of home buyers, enabling them to pay EMIs earlier and close their loans,” he said.
While expressing satisfaction with the budget, Naiknavare acknowledged that some of Credai’s key demands were not fully addressed. “Credai had placed below as its main demands for the real estate sector on behalf of home buyers: mainly the introduction of credit guarantee schemes for affordable home loans, changing the affordable housing definitions to enable vast outreach especially in metro cities like Pune, interest deduction for home buyers, reduction of long-term capital gain taxes, employment generation and skilling, urban infrastructure development funds, and policy support for environmental clearances for projects. While the majority of the demands have not been fulfilled in the budget, we would still say that overall, it’s a good budget in the long term for development and putting more money in the hands of home buyers,” he concluded.
The Union Budget 2024, with its forward-looking measures and focus on various sectors, is seen as a positive step towards achieving the mission of Vikasit Bharat 2047, and the real estate industry is optimistic about its long-term impact on development and economic growth.
