Real Estate Sector Highlights in budget
The FY 2024-25 budget, unveiled by the Union Finance Minister, Nirmala Sitharaman on July 23. 2024, is a positive budget for the real estate sector with some key initiatives to give a major push to urban development and housing -particularly affordable housing under the Pradhan Mantri Awas Yojana (PMAY).
Rs 2.2 Lakh Crore Boost for Urban Housing
The budget made a significant announcement of Rs 2.2 lakh crore boost for urban housing. This mega investment aims to address the housing needs of 1 crore urban poor and middle-class families, reflecting the Modi 3.0 government’s commitment to Housing for All.This will help ensure that the dream of home ownership becames a reality for masses.
Rs 10 Lakh Crore Allocation For Expanded PMAY
The budget came up with an allocation of Rs 10 lakh crore under PMAY 2.0, with provisions for an additional 3 crore houses under the scheme. This includes 2 crore homes in rural India and 1 crore homes in urban India over the next 5 years. This is a significant move that aims to expand the reach of PMAY and support the affordable housing segment , ensuring that more families benefit from this flagship housing programme
Affordable Loans and Interest Subsidies
The Union Finance Minister, Nirmala Sitharaman announced that the government will provide loans at affordable rates to facilitate urban housing. An interest subsidy scheme will be introduced to make these loans more accessible, encouraging more people to invest in affordable housing. This move is expected to significantly reduce the financial burden on prospective homeowners.
Rationalising Stamp Duty
Besides unveiling schemes under PMAY to boost affordable housing, the budget also underlined the policy of the Centre to encourage state governments to reduce stamp duty, particularly for women, with a view to boost home ownership.
Boosting Disposable Income
The increase in personal income tax standard deduction from Rs 50000 to Rs 75000 under the new tax regime , will boost disposable income , which in turn will facilitate home ownership.
Focus on Rental Housing Market In addition to home ownership, the budget also addresses the issue of boosting rental housing . Under this initiative , rental housing will be developed under public-private partnership model . This will give a push to rental homes that will supplement the home ownership initiative of the government in order to achieve the goal of ‘Housing For All’.
Comprehensive & Holistic Approach to Housing
The budget’s focus on promoting both home ownership and rental housing , provides a holistic approach aimed at creating a balanced housing ecosystem, benefiting both homeowners and renters.With this comprehensive approach to addressing urban housing challenges, the government aims to provide flexible housing solutions that cater to the diverse needs of urban residents.
Conclusion
The Union Budget 2024-25 marks a significant step towards addressing India’s urban housing challenges. With a massive investment and a clear focus on both ownership and rental markets, the government’s initiatives are poised to create a more inclusive and accessible housing environment. As these plans unfold, millions of urban poor and middle-class families can look forward to improved living conditions and a brighter future. The progressive policies around infrastructure and urban development will help achieve the goals of Viksit Bharat.
Vinod Behl is a senior media professional with over two decades of experience in real estate , construction and infrastructure sector and an overall four decades of rich and varied experience in print, digital and television media.
