Real estate segment upbeat post Interim Budget 2024

Finance Minister Nirmala Sitharaman's announcements of an additional two crore houses under Pradhan Mantri Gramin Awas Yojana and the push towards creating affordable rural housing in India to address the housing gap in the country has been welcomed by the real estate sector.

The additional outlay of Rs 11.11 lakh crore for infrastructure in FY25 is also expected to contribute to the overall growth of the real estate sector in the country.

"We look forward to the launch of the housing for the middle class scheme. It is a much-needed stimulus to address the housing needs of the urban middle class and affordable housing for the urban poor. If there are some tax incentives or urban land allotment schemes, we can build affordable housing in the urban areas which will help the lower middle class and unauthorised colonies to get housing inside the city instead of traveling very far outside the city limits. It will decrease their cost of living and help in reducing traffic and transportation costs,” said Nesara B.S, chairman, Concorde.

Different stakeholders in the sector feel that the announcement to construct an additional two crore houses under the Pradhan Mantri Gramin Awas Yojana marks a crucial stride in tackling the demand for affordable housing in rural areas while simultaneously fostering economic empowerment.

“The substantial investment in housing infrastructure is anticipated to stimulate economic growth and bring about a positive change in the lives of numerous families. The government's dedication to narrowing the housing gap is commendable, reflecting a robust effort to promote comprehensive development,” pointed out Pratik Kataria, director, Sainath Developers - The House of Kataria, and committee member, NAREDCO Maharashtra.

Real estate stakeholders also feel that the government’s continuing efforts in infrastructure development as outlined in the 2024 budget is the right decision. Forty per cent capital allocation on roads, highways, and railways is expected to further reinforce the government's commitment to transformative infrastructure development.

“The National Highways Authority has been doing exceedingly well with the number of kilometres being constructed every day. This will further expand the connectivity between urban centers and surrounding satellite towns giving a boost to housing, and further increase the contribution to GDP from the current 7 per cent to 10 per cent and above. As infrastructure expands to satellite towns, land prices and construction costs become increasingly viable for real estate developers. We appreciate the government's vision in promoting satellite town development through prudent infrastructure spending. This budget sets the stage for equitable and sustainable urbanization. We look forward to even greater emphasis on this in future budgets,” pointed out Pavan Kumar, founder and CEO, White Lotus Group.

Real estate experts are of the opinion that the interim budget presented today has further strengthened the government’s commitment towards long-term social and infrastructure development. “The 11.1 per cent increase in infrastructure outlay which is 3.4 per cent of GDP will further enhance the railway, roads and logistics infrastructure of the country. The three new economic railway corridors identified under the PM Gati Shakti program are massive projects with the potential to grow economic hubs and boost the development of the tier-II and tier-III cities along their alignment. The intention to complete two crore housing units in the next five years will aid the ‘Housing for All’ mission of the government. Additionally, the proposed boost to housing for the middle-class living in sub-par accommodation is also a welcome inclusion. We look forward to the details of this as we expect this to have great long-term ramifications,” said Shishir Baijal, chairman and managing director, Knight Frank India.