The Finance Minister, laid out a Union Budget for the financial year of 2024-2025.  This has set an agenda that primarily focuses on the evolution of the Indian real estate market. It is evident from the proposed budget that there will be several reforms as well as investments in the real sector at the national level. Apart from fostering urban development, sustainability and better infrastructure, this will improve the life of millions of people. You should get in touch with a good real estate consultant like Grrow Property Management who will help you get a good property.

Impact that the Union Budget will have on the Real Estate Sector

The impact that the Union Budget will have on the Real Estate sector is as follows:

1. Promote Affordable Housing

One of the most important measures of the budget is the outlay of Rs. 10 lac crores that has been approved for the Pradhan Mantri Awas Yojana or the Awas Urban Mission. This is an aspiration that seeks to provide shelter solutions to 100 lac middle class and poor families. The government is providing shelter and is also addressing economic growth in the building as well as other sector related businesses through the availability of the affordable homes. This budget is likely to increase the requirement for the construction materials and will also increase job opportunities and improve the general growth of the Real Estate market.

2. Interest Subsidies for the Home Buyers

The budget has also proposed changes in the percentage of interest on the housing loan that includes subsides for the middle income groups in regards to housing loans. This move will also encourage the first time home buyers and will also enhance the demand of properties in the market. The emphasis on the affordable housing is also expected to bring in stability to the price of the properties and make the market accessible for people who are interested in buying properties.

3. Reforms on the Taxation and Impact

This interesting shift in the budget has resulted in doing away with the indexation benefits. This reform is less complicated in comparison to tax regime. It can however be a disadvantage for the new investors who rely on indexation in order to cover the price increase due to inflation. There has been a reduction in the LTCG tax from 20% to 12% and this is certainly a welcome change. 5% reduction could provide relief for the sellers especially the ones who have gained from the rising prices of the property.

4. Infrastructure Development and Urban Planning

The budget primarily focuses on the city development as the growth centre. This move is believed to have a revolutionizing effect on the Real Estate sector. The government is trying to focus on economic and transit planning and achieve urban growth in the peri-urban regions.

5. Development that are Transit Oriented

A lot of emphasis has been put on the transit oriented development in the 14 major cities that have more than 30 lac population. This shows the concern of the government for the growth in the urban areas. The TOD concept is focused more on the idea of creating an attractive environment around the large transportation hubs that include bus terminals and metro stations in order to attract investors and have also encouraged the development of these sites.

6. Creative Brownfield Redevelopment

Apart from the new construction, the budget has also allowed a scheme for redevelopment in the brownfield sites. This includes the development of a more sustained and productive urban spaces that might be in a state of partial use or disuse. The government is trying to optimize the intensity of the use of land through such a policy especially for the housing and the other commercial units for the increasing population in the urban areas. This will beautify the city and attract the investors who are seeking new opportunities.

Conclusion

The latest Union Budget is a positive turning point in the direction of the changing real estate sector dynamics. This emphasizes taxation, investment and urban development. More focus is being led on the affordable houses under the Prime Minister Awas Yojana Urban 2.0. The subsidies in the interest and the development of physical infrastructure is believed to make the real estate market much more open and healthy. Contacting a real estate specialist will be beneficial as they will help you get the property that fits your needs.