Budget 2024 aims to transform India’s affordable housing sector, aligning with the ‘Housing for All’ vision by 2025. Stakeholders highlight the need for budgetary measures to address financing challenges, promote green building practices, and leverage technology for operational efficiency.
India’s affordable housing sector has gained momentum in recent years, propelled by government initiatives. With the population expanding rapidly and increasing demand for homes, especially affordable ones, the upcoming 2024-2025 budget is poised to lay the groundwork for significant advancements in this sector. The government is expected to allocate strategic funds and implement policy measures to transform affordable housing, aligning with the vision of achieving “Housing for All” by 2025.
Gunjan Goel, Director of Goel Ganga Developments, emphasized, “While strides have been made in affordable housing, there remains a substantial gap between supply and demand. Addressing key issues such as high land acquisition costs and cumbersome approval processes in the upcoming budget is crucial to providing the necessary impetus.”
LC Mittal, Director of Motia Group, highlighted, “Budgetary measures addressing supply and demand will be pivotal in reshaping affordable housing. Incentives for green building practices can foster sustainable urban communities that are both affordable and environmentally friendly.”
Technological advancements are expected to play a pivotal role in expanding the inventory of affordable housing units and enhancing operational efficiency by 2025.
Aman Gupta, Director of RPS Group, pointed out, “The future of affordable housing lies in embracing cutting-edge technologies. Budget incentives promoting modern construction methods and smart city technologies can revolutionize the approach to affordable housing development.”
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One critical area where budget interventions could make a substantial impact is in addressing financing challenges for developers and homebuyers:
Enhancing Refinancing Options for NBFCs: Measures to improve liquidity for Non-Banking Financial Companies (NBFCs) could ease the real estate sector’s credit crunch.
Expanding Home Loan Benefits: Increasing the deduction limit on interest for home loans under Section 24 of the Income Tax Act could incentivize first-time homebuyers.
Boosting Rental Housing: Introducing tax incentives for investments in private rental housing projects could offer a viable solution for accommodating migrant workers and young professionals who prefer rental options.
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Gaurav Kansal, Director of KBP Group, stressed, “Addressing financing challenges is crucial for catalyzing affordable housing. A comprehensive approach is needed, including incentives for developers and simplified home loan processes for aspiring homeowners.”
Gunjan Goel concluded, “The 2024-2025 budget is not merely about allocating funds; it’s about envisioning India’s urban future. With the right incentives and policy frameworks, we can create affordable housing solutions that foster vibrant communities, driving economic growth and societal advancement.”
