New scheme for middle-class, infra push to boost realty sector: Industry

The Budget announcement for middle-class home buyers is anticipated to stimulate demand for residential properties and contribute to the overall advancement of the real estate sector, real estate developers and consultants said. In the interim Budget for 2024-25, Finance Minister Nirmala Sitharaman announced a scheme targeting middle class residing in rented houses, slums, chawls, and unauthorized colonies, facilitating their home ownership. Additionally, FM outlined plans to construct 2 crore more homes for the rural poor within the next five years under the ongoing PM Awas Yojana (Grameen).
Industry players said that the budget underlined the essentiality of pro-people programs, including for the real estate sector. “The Interim Budget 2024 or Viksit Bharat Budget laid emphasis on the development of modern infrastructure, inclusivity, and all-pervasive growth as the cornerstones of our rapidly growing economy. The Housing for middle-class scheme will empower the underprivileged sections to buy and build homes,” Vikas Garg, Joint Managing Director, Ganga Realty.

The housing for middle-class scheme marks a watershed period in the Indian housing landscape as it will financially empower the middle class and salaried strata of society to either build or buy their own homes, specially those who live in unauthorised colonies or slums, said Amit Gupta, Director, Orris Infrastructure.

“The housing scheme will empower them to enjoy the basic right of housing as many of them struggle to keep their heads above water and live in slums, chawls, and rented houses. The Budget will encourage millions of people to invest in real estate assets, especially in Tier 2 and 3 hubs due to the impetus given to strengthen the modern infrastructure and transport,” Saransh Trehan, Managing Director, Trehan Group added.
By giving 70 per cent of houses under PM Awas Yojana in rural areas to women, the government has received widespread plaudit, said Vasudev Garg, Director, Rajdarbar Realty said. The scheme will reduce the count of unauthorized colonies, makeshift homes, and chawls, Surinder Singh, Director, GLS Group added.They feel that the ramping up of modern infrastructure will also increase the demand for office spaces and retail assets in metro cities and nearby towns. As per a report, retail space leasing activity has shot up by 48 per cent across eight major cities including NCR in 2023 in shopping malls and high street locations. “The Budget has exhorted programs and schemes for future-ready infrastructure, urban settlements, and housing for all sections of society, causing an inevitable boom in the demand for office spaces, retail shops, and high-street commercials,” Dushyant Singh, Director, Orion One 32 said.”The Budget has also given unequivocal importance to uplifting the standards of modern infrastructure to boost national growth and promote growth-inducive factors,” Shiven Vikram Bhatia, Executive Director, Splendor Group said. The idea of modern infrastructure will usher in growth and systematic progress not only in metropolitan regions but also in Tier 2 and 3 realty zones. It will speed up rapid urbanisation, said Arvind Singh, Managing Director, Krasa Group.

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