India's Real Estate Sector Set to Soar: Budget 2024 Brings Sweeping Reforms
The 2024 Union Budget introduces transformative measures poised to significantly impact the real estate sector, offering a much-needed boost to the industry.
Real EstateBudget 2024Affordable HousingInfrastructure DevelopmentUrban PlanningReal Estate MumbaiJul 23, 2024
The PM Awas Yojana-Urban 2.0 is set to fulfill the housing requirements of 1 crore poor and middle-class families. This ambitious initiative is expected to drive demand for affordable housing, providing a stimulus for construction activities and benefitting developers and construction companies engaged in the affordable housing segment.
Additionally, the budget has allocated a substantial Rs 2.2 lakh crore for urban housing over the next five years. This increased funding will accelerate urban housing projects, improve urban infrastructure, and enhance living conditions in cities, attracting more investments into the urban real estate market.
In a move to address the housing needs of industrial workers, the budget proposes rental housing with dorm-like accommodations in PPP (Public-Private Partnership) mode. This initiative is expected to promote industrial growth and stability in labor-intensive sectors, while also creating new opportunities for real estate developers specializing in rental and affordable housing.
The development of an industrial node on the Amritsar-Kolkata Industrial Corridor, including Gaya, is a significant step towards spurring real estate development in these regions. This will create demand for commercial and residential properties and enhance connectivity and economic activity.
The budget’s proposal to develop investment-ready “plug and play” industrial parks in or near 100 cities will attract industrial investments, leading to increased demand for industrial real estate. This initiative supports the growth of ancillary services and residential developments in these regions.
The transformation of the Vishnupad and Mahabodhi Temple Corridors into world-class pilgrim and tourist destinations will boost the tourism and hospitality sectors, driving demand for commercial real estate such as hotels, restaurants, and retail spaces.
The launch of Phase IV of the PM Gram Sadak Yojana in 25 rural habitations will improve connectivity in rural areas, promoting rural development and making these regions more accessible for investments. Improved infrastructure will likely increase real estate activity in these areas.
The budget’s provision of Rs 1.5 lakh crore in long-term interest-free loans to states for infrastructure development will enhance connectivity and amenities, positively affecting real estate markets. This will make regions more attractive for residential and commercial investments.
Overall, the 2024 budget’s focus on housing, infrastructure development, and urban planning is set to stimulate growth in the real estate sector. By addressing the needs of various segments, including affordable housing, industrial workers, and urban infrastructure, the budget aims to create a more balanced and inclusive growth environment. Real estate developers, investors, and stakeholders can expect increased opportunities and a supportive policy environment in the coming years.
Frequently Asked Questions
What is the main objective of the PM Awas Yojana-Urban 2.0?
The main objective of the PM Awas Yojana-Urban 2.0 is to fulfill the housing requirements of 1 crore poor and middle-class families.
How will the development of industrial nodes on the Amritsar-Kolkata Industrial Corridor benefit the real estate sector?
The development of industrial nodes on the Amritsar-Kolkata Industrial Corridor will create demand for commercial and residential properties and enhance connectivity and economic activity.
What type of industrial parks will be developed in or near 100 cities?
Investment-ready “plug and play” industrial parks will be developed in or near 100 cities.
How will the transformation of the Vishnupad and Mahabodhi Temple Corridors impact the real estate sector?
The transformation of the Vishnupad and Mahabodhi Temple Corridors into world-class pilgrim and tourist destinations will boost the tourism and hospitality sectors, driving demand for commercial real estate.
What is the long-term interest-free loan amount allocated to states for infrastructure development?
Rs 1.5 lakh crore has been allocated to states for infrastructure development.
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