The recent unveiling of Budget 2024-25 has brought significant changes that have a mixed impact on Indian Real Estate sector.The government has announced ambitious plans under the PM Awas Yojana Urban 2.0, targeting 1 crore urban poor and middle-class families with a whopping ₹10 lakh crore investment. This massive push is expected to stimulate housing demand and construction activity across urban India.
Additionally, plans for Transit-Oriented Development in 14 major cities could spark real estate growth around transportation hubs, creating new hotspots for both residential and commercial properties.
Land Digitization Reforms
The budget introduces groundbreaking initiatives for land management:
- Bhu-Aadhaar: A Unique Land Parcel Identification Number for all lands, promising improved land record management.
- GIS Mapping: Digitization of land records in urban areas with GIS mapping, enhancing transparency and ease of transactions.
- Cadastral Map Digitization: Converting traditional land maps to digital format for better accuracy and accessibility.
- Land Registry Establishment: A centralized system for land records, potentially reducing disputes and fraud.
- Farmer Registry Linkage: Connecting land records with farmer registries, benefiting agricultural real estate.
These measures are set to revolutionize land management and real estate transactions across India.
Investment-Friendly Measures
- Stamp Duty Reduction for women property buyers (encouraged at state level)
- Simplified FDI regulations
- Promotion of Indian Rupee for overseas investments
These measures are likely to attract both domestic and foreign investments into the real estate sector.
Tax Reforms to Watch
- Long-term capital gains tax on all assets (including real estate) set at 12.5%
- Corporate tax rate for foreign companies reduced from 40% to 35%
These changes could influence investment strategies in the real estate market.
Tourism Development: A New Frontier for Real Estate
The budget has placed a strong emphasis on tourism development, which could open up exciting opportunities for the real estate sector:
- Comprehensive Development of Odisha, Rajgir (Bihar), Nalanda: The government plans to develop Odisha's scenic beauty, temples, monuments, wildlife sanctuaries, and beaches. This initiative could boost demand for hospitality properties and vacation homes in the Eastern mainland.
Impact of the Budget
As these budget measures roll out, we anticipate:
- Increased activity in affordable housing
- Growth in rental markets
- More transparency in property transactions
- Potential surge in foreign investments in Indian real estate
