Budget 2024 wishlist: Affordable housing segment looks for expansion of Housing for All scheme and more

As the NDA government prepares to present its first full-year Union Budget following the 2024 elections, expectations are high for significant reforms and strategic allocations.Likewise, the affordable housing segment in the country which has received the Centre’s continued commitment expects funding for affordable housing and the development of new satellite townships near metro cities, said the note by Fisdom Research.

Here are the other expectations as put forth by the industry stakeholders:

Realignment of definition of affordable housing:

Deepak Patkar, MD & CEO, SMFG Grihashakti held that significant changes in socio-economic and urbanisation indicators necessitate a re-alignment of affordable housing definition in many of the cities and towns.  

Expansion of ‘Housing for All’ scheme:

Girish Kousgi, MD & CEO- PNB Housing Finance said we applaud the government's continued commitment to affordable housing, particularly through the Pradhan Mantri Awas Yojana (PMAY), as highlighted in the interim budget of February 2024. Its ambitious initiative to facilitate the construction of 3 crore homes across both rural and urban areas under the PMAY scheme underscores the dedication to ensuring 'Housing for All'.

Further, he added that it is imperative that the government considers further expansion of this scheme to facilitate the construction of more houses and bring millions of consumers within the gamut of homebuying. This crucial measure will not only fulfill the homeownership dreams of citizens but also provide a conducive environment for the development of real estate, housing finance and ancillary industries, thereby contributing to the overall goal of Viksit Bharat. 

We are hopeful that the upcoming budget for FY25 will support the growth of housing finance companies, and leverage their strengths, owing to a geographically diverse portfolio, deep distribution focus, niche customer segments and unique consumer propositions, added Kousgi.

Incentives needed for developers to increase affordable green housing supply:

Patkar underlined that affordable housing should be one of the most important long-term agendas for the country. 

He added that there is also a need to appropriately incentivize developers to increase the supply of affordable green housing.  Given the success of the earlier PMAY scheme, we eagerly await the revised contours of the PMAY-U 2.0 scheme which promises to focus on improved targeting of beneficiaries and provide timely disbursement to completed homes. the government must consider