Interim Budget 2024: Hopes remained unfulfilled for realty sector

As expected, the interim Budget 2024 did not make any major announcements, but it continued its focus on upgrading infrastructure and building connectivity across the country. This will benefit real estate development not only in the top cities but also in tier 2 and 3 cities across the country.
Making a major effort to empower the poor in the country, Finance Minister said in her budget speech that despite all the challenges of PM Awas Yojana (PMAY), the implementation of the scheme continued, the target of building about 3 crore houses was achieved and there are plans to build 2 crore more houses in the next five years.
She also said that a housing scheme would also be introduced for middle-class Indians who live in rented houses, slums and chawls. Under the new scheme scheme, they would be able to buy or build their own home, the finance minister said. However, this move will boost the expansion of the realty industry and significantly contribute to achieving the goals of middle class population.
In other major announcements made in the budget, the government increased the capital expenditure outlay by 11.1% to Rs 11.11 lakh crore. This will be 3.4% of GDP. This will unlock the potential for real estate development across assets because major part of this allocation will be used for various infra upgrades and new projects.
However, Finance Minister Nirmala Sitharaman in her budget presentation announced major infrastructure allocations related to expansion of existing airports and railway corridors, which will boost real estate activity especially in tier II and III cities.
Additionally, transit-oriented development in urban areas can boost housing demand in cities and increase housing prices.
The development of prestigious tourist centers along with various categories of hotels and restaurants is also likely to have a favorable impact on the hospitality sector.
Hopes remained unfulfilled
*The realty sector has been requesting industry status for years, believing that it would provide benefits such as easier access to credit, tax exemptions and infrastructure development. This was not clearly addressed in the interim budget.
*Tax incentives for home buyers, such as increasing the deduction limit on home loan interest under Section 24, were expected. Even the interim budget remained silent on this.