Budget 2024: New Homes for the Middle Class, Stronger Infrastructure Ahead
In the 2024 budget, the government plans to boost the real estate sector by focusing on infrastructure and introducing a new housing scheme for the middle class.
The Finance Minister, Nirmala Sitharaman, announced a housing scheme to help the middle class living in rented houses, slums, or unauthorized colonies to buy or build their own homes. This initiative is expected to add around 2 crore homes under the PM Awas Yojana rural scheme, contributing to the Housing for All agenda.
Although the budget did not directly address key demands of the real estate sector, such as industry status or increased tax incentives for homebuyers, it concentrated on affordable housing, infrastructure development, and green energy initiatives.
The allocation for the Pradhan Mantri Awas Yojana (PMAY) has increased by 49%, reaching ₹80,671 crore. This includes ₹54,500 crore for PMAY Rural and ₹26,170.61 crore for PMAY Urban. While there is a 21% decrease in allocation for urban rejuvenation and smart cities mission, there is a 9% increase in funds for Metro Projects.
The government’s emphasis on social housing for economically weaker sections (EWS) and lower-income groups (LIG) is expected to boost demand for affordable houses and strengthen the real estate market.
Additionally, the budget highlights a focus on infrastructure development, especially in Tier 2 and Tier 3 cities. The Finance Minister mentioned the expansion of Metro Rail and NaMo Bharat as catalysts for urban transformation, with increased allocations for infrastructure in these cities.
Experts believe that the government’s commitment to infrastructure development will positively impact housing and commercial development in smaller towns. The budget’s substantial allocation to infrastructure, with an 11.1% year-on-year increase to over ₹11 lakh crore, is seen as a driving force for economic growth and opportunities in the real estate sector.
The budget also acknowledges the potential of tourism, including spiritual tourism, and encourages states to develop iconic tourist centers. This focus is expected to benefit the hospitality and retail sectors in tourist destinations, creating opportunities for real estate development in these areas.
In summary, the 2024 budget aims to stimulate the real estate sector through a new housing scheme for the middle class, increased allocations for affordable housing and infrastructure development, and a focus on promoting tourism.
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