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With the goal to address supply concerns and increase market demand, developers and buyers of affordable housing are expecting the Union Budget's significant financial initiatives.
New Delhi- As looking forward the Union Budget 2024-25, the India’s real estate sector is building hopes on renewed economic measures aimed at providing affordable housing plans and overcoming on market limits.
The real estate sector’s expectations focus on the renewal of incentives necessary for both developers and buyers of affordable housing, which have failed over the past two years. The reintroduction of the 100% Tax Holiday under Section 80-IBA, could significantly improve supply in the affordable part. Additionally, focus lies on increasing the amount of the Mid-Income Housing (SWAMIH) Fund and Special Window for Affordable by Rs.50000 crore, aimed at finishing stalled projects and adding importance into the market.
Chairman of ANAROCK Group, Anuj Puri, underscored the urgency stating, "The current growth line favors mid-range and premium housing, leaving affordable housing in a weakening state. Economic improvements in the Budget are essential to address this change and meet the housing needs of lower-income groups effectively."
Under the Pradhan Mantri Awas Yojana, which expired in 2022, the Credit-Linked Subsidy Scheme (CLSS) must be restored to align with current market dynamics. As CLSS was available to Economically Weaker Sections (EWS) and Lower Income Groups.
According to developers, the existing price limits in most locations, like Mumbai, where real estate prices are high and such price limitations are not achievable, prices of units (up to ₹45 lakh) are not possible.
With high expectations for the upcoming Budget announcement, expects are positive that these measures will not only revive the affordable housing plan but also improve the overall economic growth in the real estate sector.
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