The upcoming Union Budget 2024 presents a critical opportunity for the government to address housing affordability issues, a key concern for experts in the real estate sector. Manish Jaiswal, Managing Director and CEO at Grihum Housing Finance Limited, advocates for reinstating the Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) under the Housing for All mission. He suggests revising income limits for the Economically Weaker Section (EWS) and Lower Income Group (LIG) categories to Rs 4.8 lakhs and Rs 9.2 lakhs annually, respectively, to account for inflation. Additionally, Jaiswal proposes increasing the permissible housing sizes to 60 square meters for EWS and 90 square meters for LIG, aiming to accommodate more families under these schemes.
Highlighting the importance of financial incentives, Jaiswal underscores the National Housing Bank's affordable housing scheme, offering concessional finance rates for new mortgage customers and first-time home buyers with home prices under Rs 15 lakhs. He suggests a minimum net interest margin of 5.5%, which could significantly stimulate housing demand. Jaiswal also recommends waiving stamp duty for first-time home buyers to further incentivize home ownership.
In addressing administrative improvements, Jaiswal calls for an overhaul of the Beneficiary Led Construction (BLC) scheme, advocating for a streamlined nodal agency model similar to successful government initiatives like PMAY CLSS, CGTMSE, and ECLGS. This approach, he believes, would boost self-construction activities in rural India and enhance accessibility to housing finance for underserved communities.
Looking towards sustainable development, integrating PMAY with initiatives like PM Surya Ghar Yojna could promote eco-friendly construction practices, aligning with the government's Green GDP initiative. This integration would not only support green technologies but also foster environmentally responsible growth in the construction sector.
Aditya Kushwaha, CEO and Director at Axis Ecorp, emphasizes the resilience of the real estate sector despite challenges like rising property prices and high interest rates. He anticipates the 2024 Budget to prioritize homebuyers and support continued sectoral growth, echoing the interim budget's emphasis on affordable housing. Kushwaha underscores the need for tax rationalization on construction materials and reduced approval costs to enhance investment climate and project viability.
Transparency and regulatory enhancements remain pivotal for Kushwaha, who advocates for strengthening the Real Estate (Regulation and Development) Act (RERA) and enhancing digital platforms for property transactions to mitigate fraud and build trust among buyers.
Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory, looks forward to potential policy adjustments in the upcoming budget that could stimulate demand in urban and rural real estate markets. He emphasizes the significance of schemes like CLSS under PMAY in driving housing demand across diverse demographic segments.
As stakeholders across the real estate spectrum await the Union Budget 2024-25, they seek a comprehensive policy framework that not only supports immediate affordability challenges but also lays the groundwork for sustainable and inclusive development in India's housing sector.
