The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has introduced significant measures poised to transform India’s real estate and infrastructure sectors. A key highlight is the substantial expansion of the Pradhan Mantri Awas Yojana (PMAY), with an ambitious investment of ₹10 lakh crore over the next five years. This includes a central assistance allocation of ₹2.2 lakh crore, aiming to meet the housing needs of an additional one crore urban poor and middle-class families. PMAY has already facilitated the completion of 4.21 crore houses since its inception, and this latest expansion targets three crore more houses, including two crore for rural areas under PMAY (Grameen). This move is expected to drive significant growth in affordable housing and urban development.
In addition, the government will provide ₹1.5 lakh crore in interest-free loans for infrastructure development across states over the next five years. This initiative will boost fiscal support and private sector participation through viability gap funding. As part of a broader capital expenditure plan of ₹11,11,111 crore (3.4% of GDP), the initiative aims to strengthen infrastructure and support sustainable economic growth.
Special provisions for Andhra Pradesh include a ₹15,000 crore allocation for developing Amravati, enhancing infrastructure within the Vizag-Chennai and Hyderabad-Warangal industrial corridors, and completing the Polavaram irrigation project. These measures are expected to stabilize real estate values, attract investments, address regional infrastructure deficits, and foster economic growth.
Industry experts have weighed in on these developments. They emphasize that the expanded investment in PMAY will not only meet the pressing housing needs of millions but also stimulate the construction sector, create jobs, and improve living standards. The substantial interest-free loans for state infrastructure projects are seen as a crucial step towards addressing infrastructure gaps, enhancing connectivity, and promoting balanced regional development. The focused investment in Andhra Pradesh is particularly praised for its potential to transform the state’s economic landscape, making it a more attractive destination for both domestic and international investors.
Opinions from Industry Experts
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
This budget can be termed as prudent and holistic in each aspect
the government’s decision to allocate ₹10 lakh crore under the PMAY Urban Scheme, targeting 3 crore houses and key focus on rationalising stamp duty for Home byers especially for women, underscores a robust vision for urban development and will help homebuyers would save the significant amounts, making home ownership more accessible.
At macro level sustained infrastructure impetus, reflected in the ₹11.11 lakh crore Capex allocation, we anticipate all these would create a multiplier impact and significant boost in the overall housing sector.
Additionally, a focus on rental housing in industrial parks via the PPP model, digitizing land records in cities will greatly improve transparency and ease property transactions.
Mr. Mohit Jain, Managing Director, Krisumi Corporation
Urban centers, being the drivers of growth, saw major allocation and attention in the Union Budget 2024. More homes under PMAY (U), transit development, creative redevelopment of cities, industrial parks, rental housing for industrial workers, digitization of land records, development of industrial parks and call for moderation in stamp duty, particularly for women buyers are some of the measures that will usher Indian cities towards the path of modernization, enhancing livability and enabling them as growth and employment centers. The real estate sector, as partners in this development, will play a major role in contributing towards the government’s urban vision. The increase in Standard Deduction of Rs 25,000 to Rs 75,000 will be a sentiment booster for the sector, which is on a high and expected to perform well in the near future.
Samir Jasuja, Founder and CEO of PropEquity
While the Budget sidesteps the long-standing demands of the real estate sector, the focus on job creation, skilling and employment-linked incentives, boost to infrastructure, urban redevelopment and relaxation in income tax slabs are the big reforms that will indirectly provide a fillip to the real estate sector. The call to State Governments to reduce Stamp Duty and initiate land related reforms that includes urban planning, usage, building bylaws, and GIS mapping of land records are steps in the right direction that will not just help the sector but also be a strong growth propeller for the Indian economy.
Deep Vadodaria – CEO of NILA Spaces Limited
“We commend the Honourable Finance Minister, Nirmala Sitharaman, for the robust allocation of ₹2.2 lakh crore towards PM-Awas Yojana Urban 2.0. This significant commitment reflects the government’s dedication to addressing the housing needs of the poor and middle class. The completion of 3 crore houses across rural and urban areas will greatly enhance the ‘Ease of Living’ and dignity for millions of Indians.
The reintroduction of interest subsidies under PMAY-U is a positive step that will support the affordable housing segment, making homeownership more accessible to many. Additionally, the Finance Minister’s encouragement for states to lower stamp duties for women homeowners is a progressive move that will significantly reduce property acquisition costs, fostering greater female participation in property ownership and promoting gender equality in real estate.
These initiatives, combined with the ₹1.48 lakh crore outlay dedicated to employment generation, will stimulate the construction industry, create millions of jobs, and ensure inclusive urban development. The planned regulatory framework for rental housing and the creation of dormitory-style rental housing for industrial workers mark the beginnings of a much-needed rental housing market in the country.
The digitization of land records with GIS mapping and the establishment of an IT-based system for property records and tax administration will improve the financial position of urban local bodies, contributing to more efficient urban management.
Furthermore, the government’s balanced approach, including the raise in both short-term and long-term capital gains, underscores a commitment to fiscal responsibility and sustainable economic growth. At this stage, raising taxes is a prudent move to ensure financial stability and support these ambitious development plans.”
Mr. NS Rao, Group CFO, Ramky Group
We applaud the Finance Ministry and the Indian government’s enduring dedication to economic progress. Their decision to retain the Rs 11.11 lakh crore capex outlay for infrastructure over five years, alongside fiscal support, is warmly welcomed. This commitment, along with attracting private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Furthermore, the allocation of 3.4% of GDP to infrastructure, along with Rs 1.5 lakh crore in long-term, interest-free loans to states, empowers the industry to innovate and deliver cutting-edge projects that drive economic growth and job creation. The significant aspect is the emphasis on plug-and-play industrial parks, water, sewage and municipal solid waste treatment, paving way for SDG fulfillment and circular economy.
Mr. Y. R. Nagaraja, Managing Director of Ramky Infrastructure Limited
“Ramky Infrastructure Limited commends the Government of India’s vision for propelling overall economic growth. The Viksit Bharat mission’s nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.
One of the most important aspects of the infrastructure industry is the government’s unwavering commitment to skill development and the substantial capital expenditure outlay of ₹11.11 lakh crore designated for infrastructure developments. The sanctioning of twelve “plug and play” industrial parks, fully equipped with necessary resources promises to significantly enhance the nation’s manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities indicates a decentralised approach to industrial development, one that actively incorporates private-sector partnerships.
Furthermore, we applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government’s commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure Limited firmly believes the 2024 union budget paves the way for inclusive and sustainable growth across the nation”.