Mumbai realtors build up mixed reactions to Union Budget

MUMBAI: India's top realty and infrastructure players displayed mixed reactions to the Union Budget 2023-2024 ranging from gung-ho to disappointment.

Apex industry body NAREDCO's Vice Chairperson Dr Niranjan Hiranandani lauded the capital outlay of Rs 10 lakh crore - or nearly 3.3 per cent of GDP - for the infrastructure sector which will lead to a multiplier effect on all realty classes like residential, commercial, industrial and logistics sectors, help generate employment and open up hinterlands across the country for real estate development projects.

He said that setting up the Urban Infrastructure Development Fund to be managed by NHB will ensure governance, speed in execution, and timely delivery under PPP ties, and the incremental PMAY allocation upto Rs 79,000 crore will give impetus to affordable housing and benefit a wide segment of home buyers.

Hiranandani feels that the rebates in personal tax will give additional disposable income in the hands of the discerning homebuyers to be invested back in a safe asset 'home', but the withdrawal of capital gain tax benefit on sale of property worth above Rs 10 crore will deter people from buying multiple properties as a security for their children.

K. Raheja Realty Chairman Sandeep Raheja said that after 20 months of the pandemic, the recovery of the real estate housing in India shelled out an optimistic overview of the sector's performance.

He said the Budget projects a reassuring outlay for the next fiscal, and takes the lead in attracting more investors and fostering infrastructure development projects in the urban areas.

"The highest surcharge levied under personal income tax has been reduced significantly from 37 per cent to 25 per cent and increased income tax rebate to up to Rs 7 lakh, which will increase the disposable incomes that will help investment and spending, leading to growth in both real estate & the economy."

Tata Realty and Infrastructure Ltd Managing Director & CEO Sanjay Dutt welcomed the aspects of 'green infrastructure, green energy and green homes' and the focus on urban development and sustainability.

"From a real estate industry point of view, the budget is disappointing. The government had announced an SEZ Amendment Act last year, to allow domestic companies to be able to operate in IT SEZs, which is missing this year. The sector was taken aback by the capital gains set-off on investment in residential homes under Section 54, which is now capped to Rs 10 crore which is done to remove the speculative nature of the asset class with HNI/UHNIs," he said.

Dutt said that the allocation to the PMAY rising by 66 per cent to Rs 79,000 crore next fiscal, more than 55 per cent of the estimated gap in funding for projects under the scheme has been addressed and will help in timely construction of newer affordable inventories for Tier 2 and Tier 3 cities, and the concessions for the tourism sector will boost luxury homes in holiday destinations, thus giving corporate developers an opportunity to further tap into tier 2 markets.

Maharashtra NAREDCO President Sandeep Runwal lauded the outlay for the PMAY which will provide a huge fillip to providing housing for those in need, ensure that urban and rural homes are built within the allocated time-frame and as per set standards.


Stay informed with the latest Business News on Times of India. Explore the list of Bank Holidays, stay informed about Budget 2025, discover the new Income Tax Slabs, and use the Income Tax Calculator for hassle-free tax planning.

Unlock Investment Potential: Enroll in ET's Stock Valuation Workshop - Batch 3. Secure Your Spot Now!