Empowering Indian Middle-Income Housing and Realty through With Better Infrastructure and Connectivity

In a significant move aimed at empowering the middle-income group, the government's latest proposal in the Interim Union Budget for 2024-25 introduces a comprehensive scheme designed to assist deserving individuals from this demographic.

Those residing in rented accommodations, chawls, slums, and unauthorized colonies are now being given a lifeline to purchase or construct their own homes. This initiative is part of a broader strategy to enhance the quality of living and promote homeownership among middle-income families.

Infrastructure and Connectivity:

Catalysts for Realty DemandThe commitment to upgrade infrastructure and connectivity is set to play a pivotal role in stimulating demand across the residential and commercial real estate sectors nationwide. Finance Minister Nirmala Sitharaman has outlined plans for the construction of an additional 2 crore houses over the next five years under the Prime Minister Awas Yojana - Gramin (PMAY Rural).

With the PMAY budget allocation for 2024-25 increased to Rs 80,671 crore, up from Rs 79,590 crore in the previous year, the government's dedication to expanding housing accessibility is evident.

Industry Leaders Applaud the Move

Boman Irani, President of CREDAI National, expressed optimism regarding the budget announcements. He noted that the initiative to construct 2 crore additional houses and the introduction of a housing scheme for the middle class are significant steps that will propel the housing market forward.

Innovations and Commercial Realty Boost

The unveiling of a Rs 1 lakh crore fund for research in sunrise sectors is anticipated to ignite innovation across the private sector in India, subsequently enhancing the demand for commercial real estate. Furthermore, an 11% increase in infrastructure spending is expected to fortify growth across various real estate asset classes, according to Niranjan Hiranandani, Chairman of NAREDCO National. The expansion of multi-modal corridors, new railway lines, and the doubling of airport and port capacities are forecasted to exponentially benefit the real estate landscape.

Urban Expansion and Micro-Market Development

The expansion of Metro Rail and the Namo Bharat initiative are predicted to accelerate urban spread, fostering the development of micro-markets around metropolitan areas. Launched in June 2015, the PMAY mission aims to ensure housing for all, providing central assistance for house construction to eligible families. This government push towards affordable housing, alongside efforts to enhance infrastructure and connectivity, has begun to show promising growth in Tier 2 and 3 cities as well as the outskirts of metropolitan regions.