Lackluster Budget for Housing

Lackluster Budget for Housing

Akash Pharande, Managing Director – Pharande Spaces

Unfortunately, the interim budget 2024 didn't directly include any major positive changes for India's housing industry. While the expectations included industry status, tax benefits, affordable housing boosts, and easing liquidity issues for developers, none of these materialized in the interim budget.

However, there are a few ways we could interpret the situation cautiously optimistically:

– Indirect benefits: The focus on infrastructure spending might indirectly benefit the housing industry by improving connectivity and boosting overall economic activity, potentially leading to increased demand.
– Focus on affordable housing: While lacking specific budget allocations, the government's recent emphasis on “Housing for All” and Pradhan Mantri Awas Yojana (PMAY) could translate into concrete measures later.
– Uncertainty avoided: The absence of negative changes may be seen as a positive in an environment where economic headwinds exist.

This is only the interim budget, and the main Union Budget in February will hold more substantial announcements. Even without direct intervention, government policies impacting interest rates, inflation, and economic growth can significantly influence the housing industry.

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Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in West Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in West Pune.

Pavita Jones