Finance Minister Nirmala Sitharaman announced the 2024 Union Budget, which includes a number of ground-breaking initiatives that will have a big influence on the real estate market. These programs, which provide the sector with much-needed support, cover affordable housing, infrastructure development, and urban planning.
Affordable Housing Initiatives
The PM Awas Yojana-Urban 2.0 would meet the housing requirements of one crore middle-class and lower-class families. It is predicted that this comprehensive strategy would boost the demand for affordable housing, encourage construction activity, and assist developers and construction companies involved in the affordable housing sector. In addition, the budget has allocated a substantial Rs 2.2 lakh crore for urban housing over the next five years. The building of urban housing projects, the improvement of urban infrastructure, and the general quality of life in cities will all be accelerated by this additional funding, which will attract more capital to the urban real estate market.
Focus on Industrial Workers
To address the housing needs of industrial workers, the budget recommends PPP (Public-Private Partnership) rental housing with facilities similar to dorms. This initiative is expected to create opportunities for real estate developers that concentrate on low-cost rental units, as well as to assist the growth and stability of labour-intensive industries.
Boost to Industrial and Urban Development
One significant step in encouraging real estate development in these places is the creation of an industrial cluster along the Amritsar-Kolkata Industrial Corridor that includes Gaya. In addition to boosting economic activity and connectivity, this will raise demand for both residential and commercial real estate. Moreover, transit-oriented development plans for 14 large cities with a population of over 30 lakh would promote the development of mixed-use properties around transportation hubs. Both real estate activity and urban planning will benefit from this.
Investment in Infrastructure
A greater demand for industrial real estate will result from the budget’s promise to build “connect and drive” industrial parks that are ready for investment in or close to 100 cities. This program helps these areas’ residential growth and associated service expansion.
Tourism and Cultural Development
Being the major pilgrimage and tourism destinations, the Vishnupad and Mahabodhi Temple Corridors will see a rise in demand for commercial real estate, including hotels, restaurants, and retail spaces. Similarly, the revitalisation of Nalanda University and the city’s expansion as a tourist destination will increase the region’s cultural and educational prominence and attract financial investments in educational infrastructure and related real estate developments.
Rural Connectivity and Development
Improving connectivity in rural regions will boost economic growth and increase investment accessibility. The PM Gramme Sadak Yojana’s fourth phase will begin in 25 rural habitations. With better infrastructure, real estate activity in these areas is likely to increase.
Long-Term Interest-Free Loans
The budget’s provision of interest-free long-term loans of Rs 1.5 lakh crore to states for infrastructure development will enhance facilities and connectivity, positively influencing real estate markets. Areas will thus draw more investment from both companies and homeowners.
Overall Impact
The 2024 budget’s emphasis on housing, urban planning, and infrastructure development is expected to stimulate real estate industry growth. The budget seeks to establish a more equitable and inclusive growth environment by attending to the requirements of several segments, such as industrial workers, affordable housing, and urban infrastructure. In the upcoming years, real estate developers, investors, and stakeholders should anticipate more possibilities and a favourable legislative climate.
This budget’s extensive measures demonstrate the government’s dedication to the real estate industry’s overall growth, which makes it a major driver of the country’s economic expansion.
