The government’s focus on infrastructure and connectivity across the country is expected to benefit real estate growth in cities across the country, said industry executives about the Interim Budget on Thursday.
“The Finance Minister made some announcements that will go on to benefit the sector both directly and indirectly. Despite all the challenges, the implementation of the PM Awas Yojana (Gramin) continued, achieving the target of close to 3 crore (30 million) houses and now aims for 2 crore (20 million) more houses to be taken up in the next five years,” said Anuj Puri, chairman, Anarock Group, a real estate consultancy.
“The government will launch a scheme to help deserving sections of the middle class, living in rented houses or slums, or chawls and unauthorised colonies, to buy or build their own houses. This is likely to free encroachment areas like slums for easier redevelopment,” he said.
“Transit oriented development in urban areas may give a boost to housing demand in cities and lead to rise in residential prices,” Puri said.
Interim Budget 2024-25 also focused on women’s empowerment through housing facilities under PM Awas Yojna scheme. “Giving over seventy per cent houses under PM Awas Yojana in rural areas to women as sole or joint owners has enhanced their dignity,” said Sitharaman.
She announced that the government will launch a scheme to help deserving sections of the middle class “living in rented houses, slums, or chawls and unauthorised colonies to buy or build their own houses.”
The announcement will strengthen housing demand, said Ashish Puravankara, managing director, Puravankara. “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 the urban centres.”
Pradeep Aggarwal, founder and chairman of Signature Global (India), said the Finance Minister underscored the government’s recognition of the significance of home ownership. “FM stated a housing scheme would soon be announced targeting the middle class, extending to those residing in rented houses with the aim of facilitating the construction or purchase of their own homes. This initiative is expected to revitalise the mid housing and affordable housing sector.”
The capital expenditure (capex) target for Financial Year 2025 has been set at Rs 11.1 trillion, up by 11.1 per cent from the last year.
“The strong 11.1 per cent YoY increase in infrastructure outlay to over Rs 11 lakh crore signals a steady and significant wave of upcoming developments and opening of vast opportunities for all stakeholders including real estate. The continued emphasis on green growth, particularly through the promotion of electric public transport and charging infrastructure development, further positions India on the path of sustainable and environmentally conscious real estate development,” said Badal Yagnik, chief executive officer, Colliers India.