In a mega boost to the government’s ‘housing for all’ mission, Finance Minister Nirmala Sitharaman revealed on Thursday a ₹Additional outlay of 18,000 crore for the urban housing plan. This move will help finalize real estate projects and create new jobs. This will be above and above ₹8,000 crore is already provided in the 2020 budget.
” ₹Rs 18 billion above the 2020-21 budget estimates would be provided for Prime Minister Awas Yojana (Urban) through additional allocations and extra-budgetary resources, “announced Finance Minister Nirmala Sitharaman.
“The measure will help start work on 12 lakhs of houses, as well as complete 18 lakhs of houses,” he added. This would create 78 lakhs of new jobs, as well as demand for steel and cement, Sitharaman said.
What does it mean:
“The announcement is a step in the right direction toward meeting the Housing for All vision, which will lead to job creation along with support for other industries, which will have a multiplier effect on the economy,” said Anshuman Magazine, President and CEO of CBRE India, Southeast Asia, the Middle East and Africa.
“Today’s stimulus measures will help job creation and infrastructure development in the country. Recognition of real estate as a core sector, job creation and demand for ancillary industry, and better urban allocation by Pradhan Mantri Awas Yojana, will boost the demand for housing in the country, “Shishir Baijal, President and CEO of Knight Frank India.
“The real estate sector sees a ray of hope in the government’s focus on affordable housing. The seriousness is visible as the goal is ‘Housing for all by 2022’, and it seems possible since it only takes 114 days to complete the houses We hope that additional steps will be taken to increase this desire, “said Mani Rangarajan, group operations director, Housing.com, Makaan.com and PropTiger.com.
“The stimulus package 3.0 has been well targeted on real estate, which has a significant multiplier impact on the economy due to its high job-generating capacity,” said Piyush Bothra, co-founder and CFO of Square Yards.
The Minister of Finance also announced that the differential of the circular rate and the real price has increased to 20% from the previous 10% for the sale of residential units of value up to ₹2 crore.
“The tax relief announced by FM Nirmala Sitharaman will help buyers accelerate their decision to own a home. The government’s decision will further improve sentiment and help reduce unsold inventory in the sector,” said Deepak Kapoor, director, Gulshan.
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