Union Budget 2024-25

“While the Budget outlines policy continuation to achieve the stated growth and development of the nation, with a focus on youth, women, farmers and the poor, there were no surprises for the real estate sector.  The support extended to the affordable housing will convert into a renewed push for this segment, which has been witnessing challenges.”

The Union Budget 2024 strengthens the previous roadmap with equitable allocation towards growth sectors focused on industry, manufacturing, youth, employment as well as urban and rural economies.

While the priorities and allocations remained like the interim Budget, there were some key real estate related announcements made.

An outlay towards three crore additional homes under PMAY with INR 10 lakh crore allocated towards 1 crore homes in urban areas as well as considering bringing back interest subsidies is a positive step which will support the affordable housing segment.

The outlay towards infrastructure with the setting up of industrial parks, vegetable supply chains near urban consumption centres and plug-and-play industrial parks near 100 cities are key to supporting the manufacturing sector’s rising share in the country’s GDP.

While stamp duty rationalisation advisory to states and further creating a transparent rental housing market announcements were made, there were no straight solutions offered. Similarly, while moving towards a transparent land registry market through GIS mapping, etc. as part of the next generation reforms is laudable, it needs more operational and target-based announcements.

The removal of angel tax will support the startup ecosystem and enable more startups to stay domiciled in the country. The reduction of taxes for foreign companies to 35% will further boost the entry of such companies in the country. India is already reaping the benefits of being the GCC capital with manufacturing, and R&D firms setting up in the country.

We also do not see any development on previous RE related announcements on data centre parks policy where more clarity would be helpful for the overall RE sector, though the focus on renewable and nuclear energy will be helpful for the data centre sector given its large power needs. The renewed focus on green energy production capacity augmentation with a move towards setting up an Indian carbon market is in line with India’s emission targets. 

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JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across ten major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in