The Union Budget 2024-25 sparked mixed reactions within the real estate industry. Developers of affordable housing projects cheered the significant allocation of ₹10 lakh crore under the Pradhan Mantri Awas Yojana (PMAY). This substantial investment is expected to create ample opportunities for builders focusing on low and mid-income segments. Additionally, potential tax benefits for homebuyers, such as increased deduction limits or revised tax slabs, could further stimulate demand in this category.
However, not all sectors of the real estate market emerged as winners. The budget lacked measures to address the overall slowdown in demand, dampening the spirits of some developers. On the other hand, the proposal for enabling policies to create a more transparent rental market has the potential to benefit developers catering to that specific segment. This could involve streamlining regulations, facilitating tenant verification processes, and encouraging investment in rental properties.
A point of contention for some investors was the removal of indexation benefits for property sales. This change essentially increases the capital gains tax burden, potentially leading to a decrease in investor activity and impacting overall market liquidity.
In conclusion, the Budget 2024-25 presented a targeted approach towards affordable housing and infrastructure development. While specific segments like budget-friendly housing and rental markets might witness a boost, the impact on the broader real estate industry remains to be seen, with some aspects even discouraging investor participation.
