2024 Interim Budget Emphasizes Homes for Middle Class and Rural Housing

Interim Budget Emphasizes Homes for Middle Class and Rural Housing

The Union Finance Minister Nirmala Sitharaman announced in her Budget speech that the Central Government remains committed towards its mission of Housing for All. The PMAY (Pradhan Mantri Awas Yojana) Gramin scheme is nearing its target of three crore homes already, while two crore additional homes will be developed as a part of the scheme within the coming five years.

Experts feel that the Government has consistently focused on living spaces for everyone along with enhanced inclusivity. With the recent confirmation of two crore additional homes under the PMAY-G scheme, the focus is on scaling up affordable housing for residents in rural zones. The scheme aims at offering permanent housing solutions for citizens with vital amenities, catering to people who do not have homes or those staying in Kutcha homes, inclusive of those which are damaged. Currently the minimum home size requirement under the scheme has gone up to 25 square metres from 20 square metres.

Eligible beneficiaries under the PMAY-G scheme can get loans up to Rs. 70,000 from banks and financial institutions, in tandem with an interest subsidy of three percent. The principal amount that is eligible for the subsidy is Rs. 2 lakh while the highest subsidy amount that applies for the payable EMI is Rs. 38,359. The PMAY-G scheme also includes numerous features. The cost-sharing proportion is 60:40 in plain areas with support of Rs. 1.20 lakh for every unit. In northeastern and Himalayan states along with the UT of Jammu and Kashmir, it is 90:10 with Rs. 1.30 lakh support for each unit. UTs such as Ladakh also get financing of 100% from the Central Government.

Factors like owning motorized vehicles, those with KCCs (Kisan Credit Cards) with limits higher than/equal to Rs. 50,000, employed in the Government sector, or earnings surpassing Rs. 10,000 each month, and income tax/professional tax payments are not eligible under this scheme. Refrigerator ownership or landline phone connections also disqualify people under the PMAY-G scheme. The Union Budget also announced a new scheme for middle class citizens residing in rented homes, chawls, unauthorized colonies, and slums. Experts feel that this is crucial with the country aiming at building a USD$7 trillion economy by the year 2030 which necessitates stable and urban infrastructure for accommodating population growth.

The Co-Founder and Chief Financial Officer (CFO) at Square Yards, Piyush Bothra, feels that empowering these citizens to buy or develop their homes will not just help them achieve their dreams, but also contribute towards enabling a highly resilient and strong community in turn. There will also be several possibilities at hand for developers in the residential real estate segment due to the renewed focus of the Government on affordable housing. Domestic investors, as per several experts, are also expected to be more confident about all segments in the real estate industry amidst positive market developments, interest rate stability, several incentives, and higher affordability levels.

For a detailed report on this read the articles we were featured in:

The Financial Express: https://bit.ly/3w65QsA
Business Standard: https://bit.ly/42u43JJ
The Times of India: https://bit.ly/3OtekAg
Outlook Business: https://bit.ly/3vZV7Q9
Zee News: https://bit.ly/49hT20k
Realty & More: https://bit.ly/3uijU1u
Republic: https://bit.ly/48ZHlvA
BizNews Connect: https://bit.ly/48ZHqiS
Construction World: https://bit.ly/3Usr4Lk
ConstroFacilitator: https://bit.ly/4brcyJR

Published Date: Feb 2, 2024

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