To address the housing needs of the urban poor and middle class families, the Union Finance Minister Nirmala Sitharaman has announced an investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0, including Central assistance of ₹2.2 lakh crore in the next five years.
While tabling the Union Budget 2024-25, the Finance Minister said that a provision of interest subsidy to facilitate loans at affordable rates is also envisaged.
The Union Budget 2024-25 also stated that rental housing with dormitory type accommodation for industrial workers will be facilitated in public-private partnership mode with viability gap funding support and commitment from anchor industries.
Besides, three crore additional houses under the PMAY in rural and urban areas in the country have been announced, for which the necessary allocations are being made.
“The specific creation of dormitory-style rental housing for industrial workers marks the beginnings of a much-needed rental housing market in the country. The 1.48 lakh crore outlay dedicated to employment generation should play an important role in boosting incomes for home buyers in the affordable housing segment,” said Knight Frank India CMD Shishir Baijal.
The announcement of huge allocation in both rural and urban locations under the PMAY has been welcomed by the construction companies and housing finance companies, particularly those focused on low ticket housing. They also said said that the credit-linked subsidy is a big boost for the affordable housing segment.
“Lower stamp duty for women purchasing property is likely to drive the growth of more first-time home buyers. Digitisation of land records will improve transparency, boost revenue compliance and improve overall credit flow,” said Sundaram Home Finance Managing Director D. Lakshminarayanan.
