NEW DELHI: In a big boost for the affordable housing segment, Finance Minister Nirmala Sitharaman in her Budget speech announced increasing the allocation made towards the Pradhan Mantri Awas Yojana (PMAY) by 66% to Rs 79,000 for the financial year 2023-24. The allocation stood at Rs 48,000 crore in the previous Budget. The big rise in allocation comes as the Centre is striving to achieve the ‘Housing for All’ target by 2024 against its previous missed target of 2022.
It also comes at a time when demand for affordable housing has taken a big hit due to inflationary pressure. “The enhanced allocation for PM Awaas Yojana by 66% to over Rs 79,000 crores is certainly a boost for affordable housing, which was flagging due to increased input costs and also because the buyers in this segment, mostly from the unorganized sector, were still reeling under the impact of the pandemic,” said Anuj Puri, Chairman, Anarock Group.
However, from a real estate point of view, there were no major direct announcements that could be seen as immediate booster shots, said Puri. As per Anarock data, 2022 saw a trend reversal with the share of new supply in the affordable housing category dipping to 20% of total 3.58 lakh units launched in top 7 cities from 40% of 2.37 lakh units launched in 2019. PM Narendra Modi launched the PMAY mission in June 2015 with an objective to provide housing for all by 2022.
Sitharaman also proposed to set up an Urban Infrastructure Development Fund (UIDF) through the use of priority sector lending shortfall and with Rs 10,000 crore per year allocation to develop urban infrastructure in tier II and III cities.NAREDCO vice chairman Niranjan Hiranandani said that setting up of UIDF by NHB will ensure governance, speed in execution and timely delivery under PPP ties.
He, however, said that capital gain tax benefit on the sale of property above the value of Rs 10crore is sought to be withdrawn. The real estate industry also welcomed the government’s decision to spend Rs 10 lakh crore on longer-term capital expenditure in 2023-24 and the revamping of the income tax slab.