The mood in the real estate camp received a significant boost after the Budget 2022 announced the allotment of Rs 48,000 crore under the Pradhan Mantri Awas Yojana (PMAY). With the promise of furthering the affordable housing segment, the scheme aims to complete the construction of as many as 80 lakh houses by 2023. On February 1, Finance Minister Nirmala Sitharaman asserted that the Central Government will work hand-in-hand with the state governments to make both the approval and registration processes faster and hassle-free.

“We shall also work with the financial sector regulators to expand access to capital along with reduction in cost of intermediation,” the 62-year-old said.

To better complement the PMAY, the Budget allocated Rs 60,000 crore to cover 3.8 crore households for tap water and increased the National Highways construction target to 25,000 kilometres. With improved living conditions and superlative connectivity, a potential boom in overall urban development looks set to be on the horizon. Along with a change in the milieu, employment rates will also witness a rise because of the prospective burgeoning of the area in terms of urban and industrial aspects.

Although there has been a decrease in the demand for affordable homes in the top seven cities in the past two years, the future holds much promise. The general belief is that the demand will gain momentum once the buyers switch off their wait-and-watch mode, forced by the uncertainty of the COVID-19 pandemic.

According to industry experts, the recent Budget is devoted to a long-term plan for the country with urban growth, digitization, and sustainable development at its core.

However, disgruntlement still rules large in certain sections of homebuyers. While some expressed unhappiness over the absence of any additional tax deduction on housing loans, some were left in gloomy spirits for being stuck in long-delayed projects with no relief.