To say that the Union Budget 2024-25 has left the vast majority of home buyers in India pretty dissatisfied would be stating the obvious. Even though the built environment of the Indian real estate might find its own silver lining with the given budget, the vast majority of Indians feel this budget is going to hit their finances hard. What comes as a shocker to the perception at large is the fact that their primary dissatisfaction is not limited to the removal of indexation benefits, as perceived by the analysts.
A vast majority of Indians, as many as 62%, point out that removal of indexation benefits would only hurt those who already have a house. What about the Indians who can’t even afford to buy a primary level roof over their heads? As many as 78% Indians feel affordability of homes have not been comprehensively addressed. Nearly as many, 72% to be precise, question how could they avail the benefits of PMAY (Pradhan Mantri Aawas Yojana) when their basic needs of survival are not being met.
These are the findings of a comprehensive online survey by Track2Realty. Track2Realty surveyed the respondents across its social media channels for 48 hours from the time of Union Budget presentation. Through a set of open-ended and close-ended questions, the survey tried to gauge the mood of the nation in the housing market.
“We have heard enough of K-Shaped recovery post Covid. But no! In reality it is a pyramid structure of the Indian economy now where the top is getting richer at the cost of rest 80% as you scroll the bottom of the pyramid. I won’t even say it is a bad budget; I would say it is a deliberate unjust budget to help the rich at the cost of the middle class,” says a dejected Rakesh Tayal.
Hasn’t the removal of indexation benefits hurt the home buyers most? Not really! In fact, the survey finds less than half of the respondents who already own a house, 48% to be precise, called removal of indexation as the most disappointing step. More than half Indians, as many as 54% now feel real estate is not even hedge against inflation, forget inflation beating returns.
“Property was touted to be the best asset class for investment. We all took it for granted that a piece of property gives inflation beating returns. Now with this budget, real estate is hardly even hedge against inflation. With lower custom duty on gold, I feel it is time for us to move back to our previous generations’ advice to buy gold for future. And yes, it can even be sold without bankable transaction,” says a young lawyer Anika Chawla.
What are the key concern of the Indians that could keep them off the property market? Very much on the lines of voting in recently concluded General Elections, most of the Indians are worried about their jobs that could empower them to buy a house. Nearly all, 90% of them, believe there is nothing tangible in the Union Budget that could lead to job creation.
Has Union Budget addressed the dual blow of job degrowth & house prices growth? This is one question that is in the minds of 84% Indians. How to keep wage growth in sync with housing inflation is a worry for more than 3 out of 4 Indians, as 78% find artificially inflated prices as a key concern.
“We keep hearing all the reports about reforms in the real estate sector and regulations to check malpractices. Is that all only on the paper. If it is reformed and there is transparency in the market, then the house price index has to be more or less in sync with the overall inflation. The fact is house price inflation is way too higher than either the inflation at large or the wage growth. This is Union Budget for exploitation,” cribs D Rajshekhar, a banker in Bengaluru.
Is there anything to keep the inflation in check, moving forward? This is a question that no less than 88% Indians are asking. Even more in number, 90% respondents, are asking whether apprentice level job is promising enough to actually solve the weak job market.
“3.4% of GDP on infrastructure growth sounds good on paper but the past track record is for all to see. What about the earlier budgetary announcement of INR 100 lakh crore? Where has that money being spent? Where is the infrastructure development report with that kind of tall promise only a few years back? But then public memory is short, I suppose,” quips Ratnakar Dewan in Mumbai.
Will the States afford to spend as much on infrastructure as the Finance Minister urged them to? 80% Indians don’t think so. 78% are asking whether the States would agree to the proposal to moderate high stamp duty rates. 82% are questioning whether the States agree to reduce taxes for property purchased by the women?
Track2Realty is an independent media group managed by a consortium of journalists. Starting as the first e-newspaper in the Indian real estate sector in 2011, the group has today evolved as a think-tank on the sector with specialized research reports and rating & ranking. We are editorially independent and free from commercial bias and/or influenced by investors or shareholders. Our editorial team has no clash of interest in practicing high quality journalism that is free, frank & fearless.
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