Union Budget 2024: Experts Suggest PM AWAS Yojana Urban 2.0 Will Boost Real Estate Market

Sanjeev Srivastava, Chairman and Founder of Assotech Group, emphasised the budget’s pivotal significance for the sector. He expressed enthusiasm and encouragement towards the govt's strategic steps

The government's initiatives are poised to foster innovation and growth in interior design and execution

Source : PTI

Union Finance Minister Nirmala Sitharaman, during her speech on budget 2024, announced the PM AWAS Yojana Urban 2.0, which marks a crucial step in addressing the country's urban housing challenges, with an investment of Rs 10 lakh crore. The FM's announcement of this substantial investment is expected to boost India's real estate industry, particularly in the affordable housing segment, which has faced challenges in recent years. 

As the central government is all set to provide support of Rs 2.2 lakh crore, this initiative has the potential to rejuvenate the affordable housing market. The key stakeholders from the real estate sector have shared their take on the Union Budget 2024 announcement and how they think it is going to affect the growth of the industry.

New Opportunities Ahead

Sanjeev Srivastava, Chairman and Founder of Assotech Group, stressed the budget’s pivotal significance for the sector. He expressed enthusiasm and encouragement towards the government's strategic initiatives. He highlighted the substantial allocation of Rs 50,000 crore towards infrastructure development, which he believes will revitalise the industry and enrich urban and rural landscapes.

He said, “The introduction of PM AWAS Yojana Urban 2.0 with a significant investment of Rs 10 lakh crore into urban housing underscores the government's commitment to addressing the country’s urban housing needs. This initiative will provide a substantial boost to the real estate market, fostering growth and creating new opportunities for developers and investors alike.”

Highlighting how updated tax slabs will also give real estate a puch, Srivastava added that the updated income tax slabs, offering potential savings of up to Rs 17,500 annually for taxpayers and an elevated standard deduction of Rs 75,000, are anticipated to bolster consumer purchasing power. This is expected to drive heightened demand for residential and commercial properties, thereby significantly boosting the real estate sector.

“In essence, these budgetary measures collectively represent a transformative opportunity for the real estate sector, aligning perfectly with our vision of creating impactful and sustainable real estate solutions,” he added.

Budget Will Push Innovation And Growth

Nishant Sinsinwar, Founder of Homiie Studio and Projects Makers, views the Union Budget 2024 as a significant promise for the real estate sector, particularly in infrastructure, affordable housing, and urban development. These initiatives are poised to foster innovation and growth in interior design and execution. 

Sinsinwar expresses optimism about upcoming digitisation and sustainability initiatives, aligning with their commitment to green and efficient solutions. “This budget supports SMEs, empowering local suppliers and subcontractors, and builds on our mission to connect clients with reliable local partners. As a whole, this budget sets the stage for changing the landscape of real estate. We are ideally placed to take advantage of these opportunities by driving growth and excellence in the industry,” he added.

Sanjeev Bhandari, founder and CEO of AirBrick Infra, welcomes the substantial allocations for infrastructure development announced in the Union Budget 2024-25, citing it as a positive development for the real estate and construction sector.

“The focus on rural and urban land reforms, digitisation of land records, and the establishment of land registries will streamline processes and enhance transparency. The fiscal support for advanced ultra-supercritical thermal power plants and the emphasis on renewable energy solutions align with our commitment to sustainable development. These initiatives will undoubtedly contribute to a more robust and efficient infrastructure landscape, driving growth and innovation in the sector,” Bhandari opined.