Union Budget 2024 | Budget pinches homebuyers, earns praise of real estate developers

Noida: The Union Budget 2024-25 has left homebuyers disappointed, as it did not address concerns like high interest rates on home loans and the annual increase in stamp duty charges, while real estate developers lauded the Budget.

Apartment Owners Associations in Noida and Greater Noida in the national capital region believe revoking indexation benefits in property deals will be a big setback 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," said Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA).

Noida along with Greater Noida adjoining Delhi in the national capital region has thousands of distressed homebuyers and stuck housing projects.

Rajiva Singh, president of Noida Federation of Apartment Owners Association (NOFAA) believed the budget revoking indexation benefits in property deals, will be a big setback for homebuyers.

"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. Increase in this tax burden and will make it less attractive for real estate investors," Singh told PTI.

Meanwhile, real estate developers lauded the budget.

"The Modi government is emphasising more on infrastructure. Jewar airport is playing a crucial role to boost 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," Ace Group CMD Ajay Chaudhary said.

Ashish Bhutani, CEO of Bhutani Group, said the PM Awas Yojana 2.0, which aims to provide homes for 10 million families, will make home-buying more accessible for low- and middle-income families.

Bhutani also supported new regulations to promote and regulate the rental sector and lauded the incentives for states to rebate taxes for lower-income people.

"Lower stamp duties make purchasing property more affordable for women, potentially leading to a rise in the number of female homeowners. The government's proposal for a transit-oriented development plan for 14 large cities and the significant investment to address housing needs for the urban poor and middle-class families is also appreciated," he added.

Noida's industry stakeholders in apparel, green energy and MSMEs besides local market associations also lauded the budget. The twin cities in western Uttar Pradesh are also home to a large number of industries and MSMEs.

Sushil Kumar Jain, President of Noida's Sector 18 Market Association, said although traders did not get any direct tax benefits, the direct benefit of the expenditure on development will go to the traders and entrepreneurs.

Jain, also the general secretary of Noida Jewellers Welfare Association, said the reduction in customs duty on gold and silver to 6 per cent and on platinum to 6.4 per cent, saying this move is expected to curb illegal transactions, prevent smuggling, and promote a more transparent and legal market.

Chairman of Nexgen Energia Piyush Dwivedi said the green energy sector is set to receive substantial support with Rs 10,000 crore allocated for renewable energy projects and 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, said employment and export-oriented clusters and industrial parks will be developed in collaboration with state governments and the private sector across the country.

"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," he added.

Noida Entrepreneurs Association president Vipin Malhan noted that the Centre's emphasis has been laid 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.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.