Budget 2024: Key expectations of real estate sector

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The real estate sector is a key driver of economic growth, playing a pivotal role in shaping the urban landscape and contributing significantly to employment and investment opportunities. The real estate industry eagerly awaits the unveiling of the budget landscape. As government prepares its interim budget, stakeholders in the real estate industry closely monitor announcements and policy changes that could impact the sector.

The Budget Session will commence with the address of President Droupadi Murmu on January 31 and subject to the exigencies of government business, the session may conclude on February 9.

Union Finance Minister Nirmala Sitharaman will present the interim Union Budget on February 1.

The interim budget typically takes care of the fiscal needs of the intervening period until a government is formed after the Lok Sabha polls.

Let's delve into the expectations and predictions surrounding the real estate sector in the upcoming budget.

Budget 2024: Affordable Housing

Anticipation is high for measures aimed at boosting affordable housing. Ayushi Ashar, Director of Ashar Group, said, "The upcoming Union Budget holds profound significance for the real estate sector in 2024 - our anticipation centers around key measures that can propel growth and address industry challenges. We look forward to comprehensive policies that promote affordable housing, fostering accessibility for a broader demographic."

"Additionally, a streamlined regulatory framework and incentives for sustainable development would benefit the environment and encourage innovation within the sector. We emphasize the need for financial support mechanisms, enabling developers to navigate economic uncertainties and embark on transformative projects. The government's commitment to infrastructure development influences real estate dynamics. We hope the budget aligns with our need for a resilient and dynamic real estate landscape, contributing significantly to economic recovery," she added.

Budget 2024: Foreign Direct Investment

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, said, "We anticipate streamlining the regulatory process, encouraging foreign direct investment, and advancing sustainable development through policy interventions. To ensure a healthy ecology that drives the real estate industry forward, a well-crafted budget should encourage demand by offering incentives to both developers and homeowners."

"With the start of a new fiscal year approaching, the Indian real estate market is looking forward to the release of the Union Budget. The real estate industry is hopeful that the Hon. Finance Minister will take action to solve the particular issues that our industry faces and stimulate growth in these extraordinary times," she added.

Budget 2024: Digital Transformation

With the global shift towards digitization, the real estate sector expects budgetary allocations for technology integration. Initiatives supporting the adoption of digital platforms for property transactions, land records, and regulatory processes could streamline operations and enhance transparency.

Ramashrya Yadav, Founder and CEO of Integrow Asset Management, said, "Reflecting on the remarkable journey that has elevated the real estate sector to a USD 260 billion industry, thanks to visionary policies and robust government support for infrastructure, my optimism resonates with the upcoming Union Budget. I anticipate a continued positive trajectory, focusing on policies fostering sector growth and boosting investor appeal. Envisioning regulations that encourage investor participation and further democratize real estate investments will contribute to a vibrant and inclusive landscape."

"I strongly advocate for expediting the Digital India Land Records Modernization Program (DILRMP), aiming for 100 per cent digitization of land and property records to propel the sector's long-term growth," Yadav added.

Yadav further said that while acknowledging the government's fulfilled smart city investment commitments, he expressed hope for an increased emphasis on the mission. "This not only enhances existing cities but also paves the way for newer ones, fostering job creation beyond metros and steering the industry towards a balanced and sustainable economic growth trajectory, potentially reaching $1 trillion by 2030," he added.

In conclusion, the real estate sector eagerly awaits the budget, hoping for a comprehensive and forward-looking approach that addresses the challenges and opportunities in the industry. The alignment of fiscal policies with the broader goals of sustainable development, affordability, and technological integration will be crucial for shaping the future trajectory of the real estate market.