VIJAYAWADA: Realtors and builders in Andhra Pradesh have praised the Union Budget, highlighting its positive impact on the state and, specifically, the housing sector. They noted that the allocation of Rs 15,000 crore for Amaravati's capital development has not only enhanced real estate values in the capital and surrounding areas but has also encouraged builders and realtors who had previously sought opportunities elsewhere to return.
Industry experts believe that the emphasis on affordable housing and improvements in industrial and urban infrastructure will drive growth in the real estate sector and attract more investors. The Confederation of Real Estate Developers Associations of India (CREDAI) welcomed the reduction of capital gains tax on real estate properties from 20% to 12.5%, expecting it to boost investment, enhance real estate transactions, and increase investor returns.
While the removal of indexation benefits for calculating capital gains tax on real estate properties is noted, it will not impact properties acquired before 2001, which will continue to benefit from indexation adjustments for inflation up to that year.
Subash Bose from CREDAI's AP Chapter remarked that the Union Finance Minister Nirmala Sitharaman’s announcements, including PM Awas Yojana (PMAY) 2.0, which targets affordable housing for the urban poor and middle class, are seen as significant economic boosters for the state.
Amarnath of NAREDCO added that the Union Budget has fostered a favorable environment for growth in the real estate sector, with recent changes in state leadership contributing to renewed momentum in the capital’s real estate market.