This year’s budget, which sets up the housing sector, will not only help the one crore urban poor and middle-class families who lack a place to reside. It will also boost the real estate market and open new doors for developers and homebuyers.
The real estate industry received a major boost from the Union Budget 2024, it was unveiled by Finance Minister Nirmala Sitharaman on Tuesday and highlighted urban development as a cornerstone of “Viksit Bharat.” Under the PM Awas Yojana-Urban, a pledge to invest Rs 10 lakh crore to meet the housing needs of one crore urban poor and middle-class families could change the game.
Along with Rs 2.2 lakh crore in central assistance over the following five years, this allocation shows how seriously the government is taking the urban housing crisis and promoting economic growth. Establishing industrial parks with a Plug & Play model near 100 cities and focusing on rental housing for industrial workers in PPP mode with VGF support enable more infrastructure improvements and affordable housing options. These programs will benefit related industries by creating millions of jobs and reviving the construction industry. Furthermore, developers and purchasers will gain from the emphasis on urban development and open rental markets, which will promote a more robust and inclusive real estate market, according to Avneesh Sood, Director, of Eros Group.
This year’s budget, which emphasizes the housing sector, will not only help the one crore urban poor and middle-class families who lack a place to live but will also boost the real estate market and open up new doors for developers and homebuyers.
Incorporating an interest subsidy in loans for affordable housing is particularly beneficial since it will make ownership accessible to more people. Furthermore, the PPP mode purposefully opted for rental housing, especially dorm-style accommodations. It will create a more diverse housing market by providing industrial workers with much-needed housing options. “The initiative will also encourage the private sector to invest in rental housing projects, further expanding the housing supply,” says Shiwang Suraj, Director & Founder of InfraMantra.
There is currently an excess of available properties compared to the demand from buyers, resulting in an inventory bubble in the real estate market.
According to Solomon & Co. partner Haroon Asrar, “the government’s proposal to the States, for further reducing the stamp duty for women property purchasers, represents a welcome intervention in this regard.”
An important step forward in India’s response to its urban housing crisis is the Pradhan Mantri Awas Yojna (PMAY) Urban 2.0 scheme, which seeks to bring Rs 10 lakh crore investment to urban housing. The central government’s pledge to house one crore families demonstrates its steadfast dedication to promoting inclusive urban development.
“An effective and open rental housing market will be established by the government’s proposal to implement enabling policies and regulations. Residential rental markets in urban areas will consequently become more streamlined and effective. Furthermore, digital land record digitization in urban areas will integrate GIS mapping technology. An IT-based system will also be established to manage taxes and property records. Asrar said, “This initiative would make it easier for the average man to obtain land-related paperwork, which is a positive step toward the effective management of land records.”