**What real estate industry gained from Budget 2024-25**
Delhi Development Body Allows Private Firms to Buy Flats in Bulk
Real Estate Budget 2024-25 allocated funds for urban development, infrastructure, and real estate. Nirmala Sitharaman, the Minister of Finance, presented the Union Budget in Lok Sabha, highlighting the government’s focus on generating opportunities in various sectors. The budget includes provisions for the Pradhan Mantri Awas Yojana (PMAY), transit-oriented development, rental housing, stamp duty reforms, and land-related actions.
**Pradhan Mantri Awas Yojana (PMAY)**
Under the PM Awas Yojana, the budget allocated funding for three crore additional houses in rural and urban areas. The government aims to address the housing needs of one crore urban poor and middle-class families with an investment of Rs 10 lakh crore. This includes central assistance of Rs 2.2 lakh crore over the next five years. The budget also introduced provisions for interest subsidy to facilitate affordable loans for housing.
**Transit Oriented Development**
The budget proposes the formulation of transit-oriented development plans for 14 large cities with a population above 30 lakh. These plans will include an implementation and financing strategy to improve connectivity and livability in urban areas.
**Rental Housing**
In order to enhance the availability of rental housing, the budget includes policies and regulations for efficient and transparent rental markets. Additionally, the budget aims to facilitate rental housing for industrial workers through Public-Private Partnership (PPP) mode with Viability Gap Funding (VGF) support.
**Stamp Duty Reforms**
One of the key announcements in the budget is the encouragement of states to reduce high stamp duty rates. The government also emphasized the need to lower stamp duty rates for properties purchased by women. This reform is expected to be an essential component of urban development schemes.
**Land-related Reforms**
The budget highlights interventions for land-related reforms in rural and urban areas. The reforms aim to improve land administration, planning, and management. In rural areas, the focus is on the assignment of Unique Land Parcel Identification Numbers (ULPIN) for all lands, digitization of cadastral maps, establishment of land registries, and linking to farmers’ registries. In urban areas, the government plans to digitize land records with GIS mapping and establish an IT-based system for property record administration and tax administration.
**Cities as Growth Hubs**
The government aims to facilitate the development of “Cities as Growth Hubs” through economic and transit planning. This will involve the orderly development of peri-urban areas through town planning schemes, promoting sustainable and organized growth.
**Long Term Capital Gains**
Long-term gains on all financial and non-financial assets will now be subject to a tax rate of 12.5%. To benefit the lower and middle-income classes, the limit of exemption of capital gains on certain financial assets has been increased to Rs 1.25 lakh per year. However, the removal of indexation benefit for long-term capital gains on real estate transactions may result in a higher tax burden for some individuals.
**Andhra Pradesh Capital**
Special financial support will be provided by the central government under multilateral development agencies for the need of a capital in Andhra Pradesh as per the Andhra Pradesh Reorganization Act. An amount of Rs 15,000 crore has been arranged for the current financial year, with additional funds in future years.
**National Company Law Tribunals**
The Insolvency and Bankruptcy Code (IBC) has resolved over 1,000 companies and disposed of 28,000 cases involving over Rs 10 lakh crore. The government plans to initiate appropriate changes in the IBC to speed up insolvency resolution. Additional tribunals will be established, some of which will exclusively handle cases under the Companies Act.
**PM Surya Ghar Muft Bijli Yojana**
PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants and provide free electricity up to 300 units per month to one crore households. The scheme has received a remarkable response, with over 1.28 crore registrations and 14 lakh applications.
**Industrial Parks**
The government will facilitate the development of “plug and play” industrial parks with complete infrastructure in 100 cities. This initiative will be a partnership between the government, states, and the private sector. Additionally, under the National Industrial Corridor Development Programme, twelve industrial parks will be sanctioned.
**Industry Reaction**
The real estate industry has reacted positively to the budget measures. Changes such as the reduction in the long-term capital gains holding period and stamp duty reforms are expected to boost investor participation and make real estate more attractive as an investment. The focus on affordable housing, rental housing, and transit-oriented development is also seen as positive for the industry. However, some industry representatives have urged the government to consider granting industry status to the real estate sector, addressing input tax credit and GST relief, and redefining the definition of affordable homes.
The comprehensive approach of the Union Budget towards job creation, boosting consumption, and sustainable urban development is expected to have a profound impact on the real estate sector and contribute to the overall growth of the economy. The budget aims to enhance the quality of urban living, promote efficient infrastructure, and encourage investment in the real estate market. With a focus on implementing key reforms and initiatives, the government is taking significant strides towards achieving its vision for the real estate sector in the coming years.
(Note: The provided article has been created using the given mixed text and is not a real news article)
