Budget 2024-25 Overlooks The Shrinking Affordable Housing Segment, Say Developers

After the Union finance minister Nirmala Sitharaman announced the expansion of the Pradhan Mantri Awas Yojana (PMAY ), with an investment of Rs 10 lakh crore including a central assistance of Rs 2.2 lakh crore over next five years from 2024, in the budget on July 23, experts pointed out that there was no specific announcement on the long-pending demand for redefining affordable housing.

Sources confirmed that real-estate developers and experts have been demanding an increase in the threshold of affordable homes from 60 sq m (for LIG) to 90 sq m and the price bracket from Rs 45 lakh to Rs 75-80 lakh. They have also sought incentivising developers and home buyers to develop and invest in green projects.

According to a recent report by ANAROCK, the share of sales in affordable housing has decreased from 37% five years ago to 20% in 2023. In Bengaluru, housing sales fell by 2 percent in January-March quarter of 2024 as compared to the same period in 2023.

Source: Moneycontrol