### Affordable Housing
The budget places a strong emphasis on revitalizing the affordable housing sector, which has seen a decline in demand post-COVID-19. The government has proposed several initiatives to boost this segment:
1. *Credit-Linked Subsidy Scheme (CLSS)*: The revival of the CLSS under the Pradhan Mantri Awas Yojana (PMAY) for Economically Weaker Sections (EWS) and Low-Income Groups (LIG) aims to incentivize first-time homebuyers [oai_citation:1,Budget 2024: Will affordable housing finally receive the boost it needs? Key expectations from the real estate sector | Mint](https://www.livemint.com/economy/budget-2024-will-affordable-housing-finally-receive-the-boost-it-needs-key-expectations-from-the-real-estate-sector-11718961562285.html).
2. *Tax Breaks*: Reintroduction of the 100% tax holiday for developers building affordable housing under Section 80-IBA of the Income Tax Act, which had expired previously, is expected to encourage the construction of affordable homes [oai_citation:2,Budget 2024: Will affordable housing finally receive the boost it needs? Key expectations from the real estate sector | Mint](https://www.livemint.com/economy/budget-2024-will-affordable-housing-finally-receive-the-boost-it-needs-key-expectations-from-the-real-estate-sector-11718961562285.html).
3. *Revised Definitions and Caps*: Adjustments to the affordable housing criteria, such as increasing the price cap from ₹45 lakh to more city-specific thresholds (e.g., ₹85 lakh in Mumbai), to make more homes eligible for lower GST rates and other benefits [oai_citation:3,Budget 2024: Will affordable housing finally receive the boost it needs? Key expectations from the real estate sector | Mint](https://www.livemint.com/economy/budget-2024-will-affordable-housing-finally-receive-the-boost-it-needs-key-expectations-from-the-real-estate-sector-11718961562285.html) [oai_citation:4,Budget 2024: India’s real estate sector needs an urgent attention – BusinessToday](https://www.businesstoday.in/union-budget/story/budget-2024-indias-real-estate-sector-needs-an-urgent-attention-415661-2024-02-01).
### Middle-Class Housing and PMAY
The budget has allocated substantial funds towards new middle-class housing programs and the PMAY-G (Gramin) initiative. This allocation is projected to spur significant growth in the housing sector by ensuring a steady supply of affordable and mid-range homes. The continued focus on PMAY aims to fulfill the “Housing for All” objective by 2024 [oai_citation:5,Budget 2024 India: Real Estate Highlights and Impacts for the Year](https://goelgangadevelopments.com/market-news/budget-2024-india-real-estate-highlights-and-impacts-for-the-year/).
### Tax Reforms and Incentives
The budget introduces several tax reforms to further stimulate the real estate market:
1. *Interest Rate Rebates*: Increased rebates on home loan interest rates under Section 24 of the Income Tax Act to ease the financial burden on homebuyers [oai_citation:6,Budget 2024: India’s real estate sector needs an urgent attention – BusinessToday](https://www.businesstoday.in/union-budget/story/budget-2024-indias-real-estate-sector-needs-an-urgent-attention-415661-2024-02-01).
2. *Stamp Duty Reductions*: Potential reductions in stamp duty rates on property transactions are expected to lower transaction costs and boost property sales [oai_citation:7,Budget 2024: India’s real estate sector needs an urgent attention – BusinessToday](https://www.businesstoday.in/union-budget/story/budget-2024-indias-real-estate-sector-needs-an-urgent-attention-415661-2024-02-01).
### Infrastructure Development
A significant portion of the budget is earmarked for infrastructure development, which indirectly benefits the real estate sector by improving connectivity and accessibility to housing projects. Enhanced infrastructure is likely to increase the desirability and value of residential and commercial properties [oai_citation:8,Budget 2024 India: Real Estate Highlights and Impacts for the Year](https://goelgangadevelopments.com/market-news/budget-2024-india-real-estate-highlights-and-impacts-for-the-year/).
### Sustainability and Green Real Estate
The budget also emphasizes sustainable growth with incentives for green building practices. This includes tax deductions and subsidies for developers who adopt eco-friendly construction methods and materials, promoting long-term environmental benefits and energy efficiency [oai_citation:9,Budget 2024: Will affordable housing finally receive the boost it needs? Key expectations from the real estate sector | Mint](https://www.livemint.com/economy/budget-2024-will-affordable-housing-finally-receive-the-boost-it-needs-key-expectations-from-the-real-estate-sector-11718961562285.html) [oai_citation:10,Budget 2024 India: Real Estate Highlights and Impacts for the Year](https://goelgangadevelopments.com/market-news/budget-2024-india-real-estate-highlights-and-impacts-for-the-year/).
### Industry Status for Real Estate
There is a renewed push from the real estate community for the sector to be granted “industry status,” which would enable developers to access financing at lower interest rates and more favorable terms, thus reducing the cost of capital and promoting more significant investments in housing projects [oai_citation:11,Budget 2024: India’s real estate sector needs an urgent attention – BusinessToday](https://www.businesstoday.in/union-budget/story/budget-2024-indias-real-estate-sector-needs-an-urgent-attention-415661-2024-02-01).
### Conclusion
Overall, the 2024 Union Budget is poised to provide a much-needed boost to the real estate sector, particularly in affordable housing, infrastructure development, and sustainable building practices. These measures are expected to enhance market sentiment, stimulate demand, and drive growth in one of India’s most vital economic sectors.