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Budget 2023 to 24 Updates Real Estate Sector

By Rishabh Chamoli | 2023-02-01

Union Budget 2023 to 24 Updates For Real Estate
The Pradhan Mantri Awas Yojana (PMAY) received an allocation of Rs 79,000 crore from the Budget 2023 to 24 on February 1 which will help the governments initiative to provide housing for the urban poor.

Finance Minister Nirmala Sitharaman stated that the outlay of PMAY is being increased by 66 percent to about Rs 79,000 crore when presenting the Union Budget on February 1.

For the completion of 80 lakh residences under PMAY, Rs 48,000 crore had been allocated in the Budget 2022.

As of November 2022, more than 1.20 crore residences had been sanctioned under PMAY, with more than 64 lakh finished, with the remainder under construction.

About PMAY
The Pradhan Mantri Awas Yojana (PMAY) is a Government of India initiative that aims to provide affordable housing to the urban poor by 2022. The scheme was first introduced on June 25, 2015. The PMAY scheme has an interest rate that starts at 6.50% p.a. and can be used for up to 20 years. The PMAY Urban schemes implementation period has been extended until December 31, 2024. The Union Cabinet decided in response to requests from Union Territories and states. Previously, the goal was to provide housing by March 2022.

Urban Infrastructure Development Fund
On February 1, Finance Minister Nirmala Sitharaman said that the government would allocate Rs 10,000 crore annually for the Urban Infrastructure Development Fund.

According to the FM, a budget of Rs 10,000 crore has been set aside each year for the fund.
According to her, Governmental agencies would use the fund, which will be managed by National Housing Bank and be established by a shortfall in lending to the priority sector, to build urban infrastructure in tier2 and tier3 cities.

The Rs 10,000 crore investment for Urban Infra Development Fund would support to construct better infrastructure in Tier 2 and Tier 3 cities, hence enhancing residential and commercial demand in these areas, said Ramesh Nair, CEO, India and MD, Market Development, Asia at Colliers.