Boosting Affordable Housing: Expectations for Budget 2024
Experts discuss key expectations for the housing sector from Budget 2024, including revisions to the Credit Linked Subsidy Scheme and establishment of an institution to provide low-cost refinance.
Housing SectorBudget 2024Affordable HousingHdfcImgcReal Estate NewsJul 18, 2024
Mahesh Misra, Managing Director of IMGC, echoed similar sentiments, emphasizing the need to promote affordable housing. He pointed out that while India's GDP has grown at a compound annual growth rate (CAGR) of about 6.5% over the last ten years, the housing sector has grown at more than double that rate. However, this growth has been skewed towards the premium housing segment, with houses priced below ₹30 lakh now accounting for only about 34% of the market.
To address these disparities, Misra advocated for the establishment of an institution akin to the National Housing Bank (NHB) to provide low-cost refinance with monitored end-use. He also hinted at a potential government-backed guarantee scheme in the new PMAY version, which could serve as a significant market catalyst.
Information
HDFC (Housing Development Finance Corporation Limited) is one of India's leading housing finance companies, providing a range of financial services to customers.
IMGC (India Mortgage Guarantee Corporation) is a leading mortgage guarantee company in India, providing credit enhancement to residential mortgages.
HDFC (Housing Development Finance Corporation Limited) is a leading housing finance company in India, established in 1977. HDFC has been a pioneer in the housing finance sector, providing a range of financial services to customers.
IMGC (India Mortgage Guarantee Corporation) is a mortgage guarantee company in India, established in 2013. IMGC provides credit enhancement to residential mortgages, making homeownership more accessible to Indians.
Frequently Asked Questions
What is the Credit Linked Subsidy Scheme (CLSS)?
The Credit Linked Subsidy Scheme (CLSS) is a program introduced in 2015-2016 to provide subsidies to homebuyers, especially in the affordable housing segment.
Why is the housing sector important for job creation?
The housing sector is a significant generator of employment opportunities, and encouraging the sector can lead to job creation and economic growth.
What is the National Housing Bank (NHB)?
The National Housing Bank (NHB) is a apex financial institution in India, established to promote and regulate the housing finance sector.
What is the purpose of the proposed institution akin to the National Housing Bank (NHB)?
The proposed institution would provide low-cost refinance with monitored end-use, promoting affordable housing and addressing disparities in the housing sector.
What is the significance of the government-backed guarantee scheme in the new PMAY version?
The government-backed guarantee scheme could serve as a significant market catalyst, promoting affordable housing and encouraging lenders to provide home loans to more customers.
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