The Union Budget 2024-25 has stirred contrasting responses, leaving homebuyers disheartened while real estate developers have extended their accolades.
The budget, presented yesterday, has failed to address critical concerns for homebuyers such as high interest rates on home loans and annual stamp duty increases, leading to widespread disappointment.
Apartment Owners Associations in Noida and Greater Noida, regions known for their extensive residential projects and distressed homebuyers, have voiced significant concerns.
The revocation of indexation benefits in property deals has been particularly contentious.
Abhishek Kumar, president of the Noida Extension Flat Owners Welfare Association (NEFOWA), expressed dismay at the budget’s lack of specific provisions for homebuyers.
"This budget has left homebuyers disappointed, with no specific provisions or reliefs offered for them. Despite the high interest rates on home loans and the annual increase in stamp duty charges, the budget did not address these concerns," he remarked.
Noida and Greater Noida, adjacent to Delhi in the National Capital Region, host thousands of distressed homebuyers and numerous stalled housing projects.
Rajiva Singh, president of the Noida Federation of Apartment Owners Association (NOFAA), highlighted the adverse impact of revoking indexation benefits.
"Apartment owners selling their property will no longer be able to adjust their purchase price using inflation. This new policy will significantly reduce their capital gains. The increase in this tax burden will make it less attractive for real estate investors," Singh explained.
While homebuyers express dissatisfaction, real estate developers have welcomed the budget with enthusiasm. Ajay Chaudhary, CMD of Ace Group, praised the government's focus on infrastructure development.
"The Modi government is emphasising more on infrastructure. Jewar airport is playing a crucial role in boosting the economy in Delhi and Uttar Pradesh. Since the Jewar airport is developed along Yamuna Expressway, it is going to be a game changer. This region is the epicentre of major infrastructure development, attracting jobs and investment," Chaudhary noted.
Ashish Bhutani, CEO of Bhutani Group, echoed similar sentiments, particularly appreciating the PM Awas Yojana 2.0, which aims to provide homes for 10 million families.
"The PM Awas Yojana 2.0 will make home-buying more accessible for low- and middle-income families. The new regulations to promote and regulate the rental sector, along with incentives for states to rebate taxes for lower-income people, are commendable," Bhutani said.
Bhutani also supported initiatives to reduce stamp duties, making property purchases more affordable for women and potentially increasing female homeownership.
He lauded the government's proposal for a transit-oriented development plan for 14 large cities and the significant investment to address housing needs for urban poor and middle-class families.
Noida's industry stakeholders, spanning sectors such as apparel, green energy, and MSMEs, alongside local market associations, also lauded the budget.
Noida and Greater Noida, significant hubs for industries and MSMEs in western Uttar Pradesh, saw positive responses from various quarters.
Sushil Kumar Jain, President of Noida's Sector 18 Market Association, pointed out that while traders did not receive direct tax benefits, the expenditure on development will directly benefit traders and entrepreneurs.
Jain, also the general secretary of Noida Jewellers Welfare Association, welcomed the reduction in customs duty on gold and silver to 6 percent and on platinum to 6.4 percent.
"This move is expected to curb illegal transactions, prevent smuggling, and promote a more transparent and legal market," Jain said.
Piyush Dwivedi, Chairman of Nexgen Energia, highlighted the substantial support for the green energy sector with Rs 10,000 crore allocated for renewable energy projects, Rs 5,000 crore for the Green Technology Fund, and Rs 2,500 crore in incentives for electric vehicles.
Lalit Thukral, Chairman of the Noida Apparel Export Cluster, appreciated the focus on employment and export-oriented clusters and industrial parks.
"Housing facilities with dormitories will be developed for industrial workers in a PPP model in industrial areas, and MSME clusters, preferably export-oriented, would be promoted," Thukral added.
Vipin Malhan, President of the Noida Entrepreneurs Association, noted the Centre’s emphasis on providing guaranteed technical assistance to the MSME sector.
"This will give impetus to the MSME sector which makes a significant contribution to the economy," Malhan said.
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