Budget Boosts Housing: Real Estate Developers React

New Delhi, Jul 23 (PTI) The decision to provide homes to 1 crore urban poor and middle-class families with a massive investment of Rs 10 lakh crore, including a central assistance of Rs 2.2 lakh crore, will benefit real estate and allied industries, according to realtors' bodies CREDAI and NAREDCO.

In her Budget speech, Finance Minister Nirmala Sitharaman said, "Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore".

"This will include the central assistance of Rs 2.2 lakh crore in the next 5 years," she said, adding that the government also plans to provide interest subsidy to facilitate loans at affordable rates.

Allocations have also been made to develop 3 crore additional houses under the Pradhan Mantri Awas Yojana (PMAY) in rural and urban areas.

Reacting to budget proposals, CREDAI National President Boman Irani said these announcements reiterate the government's focus on "Housing for All".

NAREDCO President G Hari Babu said, "The budget has presented ambitious housing plans."

This investment is likely to benefit developers, construction companies and allied industries, he added.

Hari Babu also appreciated the focus on urban development, the promotion of rental housing and creation of modern infrastructure.

Among developers, Sanjay Dutt, MD & CEO of Tata Realty and Infrastructure, said, "The PM Awas Yojana's target to address the housing needs of one crore urban poor and middle-class families with an investment of Rs 10 lakh crore is a landmark initiative. Interest subsidies to facilitate loans will make housing more accessible and affordable, stimulating real estate demand."

Venkatesh Gopalakrishnan, Director Group Promoter's Office and MD & CEO of Shapoorji Pallonji Real Estate, said, "We appreciate the government's new initiatives in the Indian Budget 2024–25, which show a strong commitment to strengthening the housing sector.

Amit Sinha, Managing Director & CEO of Mahindra Lifespace Developers, said that the allocation of funds under the PM Awas Yojana, including interest subsidies, will make housing much more affordable for the urban poor and middle class.

Signature Global Chairman Pradeep Aggarwal said the decision to digitise land records in cities will greatly improve transparency and ease property transactions, while Krisumi Corporation MD Mohit Jain welcomed the move to encourage states to reduce stamp duties.

Bengaluru-based Sattva Group MP Bijay Agarwal said the Budget will help in augmenting housing prospects and addressing the housing shortage.

Pavitra Shankar, Managing Director of Brigade Enterprises, welcomed the thrust of the government on infrastructure development, job creation and provision of Rs 2.2 lakh crore central assistance for urban housing.

"The union budget however has not addressed some of the key demands of the real estate sector, including granting of industry status..., and single window clearance. Additionally, there is only a marginal increase in savings on individual income tax under the new taxation regime. We urge the union government to reconsider the focus on the real estate sector to include these demands," she said.

Manish Sheth, MD & CEO of JM Financial Home Loans said the fiscal support will boost demand for housing finance. Another commendable proposal is to encourage states to lower stamp duties for women homebuyers and reduce duties for properties purchased by women.

Nayan Raheja of Raheja Developers said, "With the announcement of Rs 10 lakh crore investment in urban housing, the budget has set the right priorities, encouraging affordable housing."

Ankush Kaul, chief business officer of Ambience Group, said, "Even though there has been no direct announcement affecting the real estate sector, the budget's emphasis on growth will boost the sector's growth."

M3M India CFO Sanjeev Kumar Sharma welcomed the Budget's focus on building infrastructure and providing support for the housing sector.

Samyak Jain, Director at Siddha Group, said the government's proposed interest subsidy scheme for urban housing is a positive step towards making homeownership more accessible.

Aman Gupta, director of RPS Group, said, "With projected urbanisation to reach 50 per cent in 2050, this Rs 10-lakh crore investment had been most timely and sorely required."

Rattan Hawelia, Chairman of Noida-based Hawelia Group, said the focus on rental housing for industrial workers is a good decision.