Budget 2024: Govt to launch housing scheme for middle-class – Expert reactions pour in

Interim Budget 2024: During the presentation of the interim Budget 2024, Finance Minister Nirmala Sitharaman announced the launch of a housing scheme with the aim of providing affordable housing for middle-class citizens. The initiative targets those currently residing in rented homes, slums, or unauthorised colonies, allowing them to either purchase or construct their own houses.

This move aligns with the broader 'Housing for All' mission, encompassing both the ongoing Pradhan Mantri Awas Yojana-Urban and the Pradhan Mantri Awas Yojana-Rural or Grameen schemes.

Expanding shelter horizons

Sitharaman emphasised the success of the Pradhan Mantri Awas Yojana-Rural scheme, citing the construction of 3 crore houses. The new budget outlines a plan for an additional 2 crore houses over the next five years to meet the increasing demand resulting from the growth in the number of families.

Real estate experts express positive sentiments towards the budget announcement.

Shishir Baijal, Chair and MD, Knight Frank, emphasised the government's focus on long-term social and infrastructure development in the union budget.
"The intention to complete 2 cr 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," Baijal said.

“The proposal to add 2 crore additional houses under the PM Awas Yojana (Gramin) over the next 5 years is likely to enable growth in the rural areas. Further, the announcement on housing for middle class for deserving sections would propel the development of real estate and construction activities along with allied sectors,” said Anshuman Magazine, Chairman & CEO, CBRE.

Anuj Puri, Chairperson, ANAROCK Group, highlighted, "As anticipated, the Interim Budget 2024 made no big-bang announcements. However, the government will launch a scheme to help deserving sections of the middle class, living in rented houses or slums, or chawls and unauthorized colonies, to buy or build their own houses. This is likely to free encroachment areas like slums for easier redevelopment".

Housing & home loan sector uplift

Ravi Subramanian, MD & CEO, Shriram Housing Finance Ltd, commented on the growth-oriented nature of the budget. "Though the FM has not raised the cap on the affordable housing segment, the government’s focus on middle-class housing by announcing a scheme to help them buy or build their own houses will boost the country’s housing sector and home loan market."

Piyush Bothra, Co-Founder and CFO, Square Yards, emphasised the significance of the government's focus on inclusivity. “The government's announcement regarding the construction of an additional 20 million homes under the Pradhan Mantri Awas Yojana- Rural (PMAY) underscores its focus on promoting inclusivity and ensuring ample living accommodations for all.”

Pradeep Aggarwal, Founder & Chair, Signature Global, highlighted the government's recognition of homeownership. “In a notable announcement, the FM introduced a housing scheme which will target the middle class, extending to those residing in rented houses with the aim of facilitating the construction or purchase of their own homes.”

Innovative infra thrust

Badal Yagnik, Chief Executive Officer, Colliers India, discussed the budget's focus on infrastructure, housing, green energy, and innovation. "The Interim budget was laid on the premises of infrastructure, housing, green energy initiatives and innovation, setting up the foundation for a 6 per cent to 7 per cent sustained GDP growth in the next few years."

Ravi Subramanian, MD & CEO, Shriram Housing Finance Ltd, commented on the growth-oriented nature of the budget. "Though the FM has not raised the cap on the affordable housing segment, the government’s focus on middle-class housing by announcing a scheme to help them buy or build their own houses will boost the country’s housing sector and home loan market."

While the interim budget did not directly address some key expectations of the real estate sector, industry experts anticipate that the upcoming Union Budget may provide more concrete measures.