The central government will launch a housing scheme for those living in rented homes, slums and unauthorized colonies to buy or build their own houses, said Finance Minister Nirmala Sitharaman in the interim Budget 2024 speech.
"A scheme soon be launched to help deserving sections of the middle class living in rented houses or slums or chawls or unauthorised colonies to buy or build their own houses," the FM said while presenting the Budget in Parliament.
The FM also said that 3 crore houses have been built under the Pradhan Mantri Awas Yojana (PMAY)-Rural scheme and another 2 crore houses will be taken up over the next five years.
“Despite the challenges due to COVID, implementation of PM Awas Yojana Rural continued, and we are close to achieving the target of 3 crore houses. 2 crore more houses will be taken up in the next 5 years to meet the requirement arising from an increase in the number of families,” stated Sitharaman.
The two announcements are in line with Prime Minister Narendra Modi’s ambitious Housing For All scheme.
Kaushik Mehta, Founder & CEO of RUloans Distribution Services, said that the Budget 2024's housing scheme for the deserving middle class is a proactive and positive move by the government.
“This initiative not only fulfills longstanding housing needs but also energizes the Housing Loan segment, propelling real estate growth. By addressing housing needs and promoting lending opportunities, the government shows a commitment to an inclusive and optimistic future. This aligns with a forward-thinking strategy, supporting middle-class aspirations for homeownership and economic vitality,” added Mehta.
Ravi Subramanian, MD & CEO, Shriram Housing Finance, said that though the FM has not raised the cap on the affordable housing segment, the government’s focus on middle-class housing by announcing a scheme to help them buy or build their own houses will boost the country’s housing sector and home loan market. The higher allocation to PM Aavaz Gramin will also be beneficial for the rural housing segment. The measures will also stimulate the core sector output demand and rural jobs, added Subramanian.