The Interim Budget may have delivered on furthering the Prime Minister's pet 'Housing For All' scheme. Announcing that the PM Awas Yojna (Grameen) had already led to the construction of 3 lakh homes, FM Nirmala Sitharaman announced that the government was targeting the construction of 2 lakh more homes within a five-year period.
However, it was another announcement in the FM's interim budget — the decision to focus on mid-income housing — that won praise from the real estate sector. In her brief budget speech, Sitharaman said the government would introduce a scheme to help the middle-class, presently residing in rented homes, slums and unauthorized colonies build or buy their own homes.
"The announcement will provide further impetus to the strong housing demand," said Ashish Puravankara, Managing Director at Puravankara Ltd. "The initiative seems to be aimed at addressing housing needs of those living in substandard conditions like slums and chawls, or burdened by rent," said Sandeep Runwal, President at NAREDCO Maharashtra.
Runwal added that facilitating home ownership, the government was not only looking to improve living standards but also stimulate the realty sector and associated industries.
India's real estate sector has been primed for growth in the new year. A report by Concorde Homes has projected a CAGR of 9.2% for the country's real estate sector between 2023 and 2028, with 2024 earmarked for marked growth on the back of continuing urbanisation, rental growth and price-appreciation.
"Increased focus on transit-oriented development and expansion of metro rail systems in cities, along with strengthening the electric vehicle ecosystem, will encourage people to settle in the peripheries of urban centres," Ashish added.
Incidentally, JLL's Home Purchase Affordability Index has singled out Mumbai, Delhi and Chennai as three cities that could grow rapidly in the New Year — a factor that could be bolstered by impending repo-rate cuts, which would in turn make homes more affordable to the Indian homebuyer.
However, some others believe that more focus on affordable housing and tax provisions ought to be the need of the hour. "Hopefully, the government will revisit areas like affordable housing and tax provisions, particularly individual income tax, which directly impacts areas like housing development and overall economic development," said Murali Malayappan, Chairman and MD, Shriram Properties Ltd.
He added, "With India becoming a world power, we can expect a comprehensive regular budget this year that fulfils the aspirations and expectations of various industries and individuals."
First Published: Feb 1, 2024 8:53 PM IST
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