The Union Budget 2019 focused on the nation’s growth bringing in a positive sentiment to the overall economy. The budget focuses on the agricultural and rural sectors, infrastructure, education, job creation, digital economy, etc., it is a budget for all. On many fronts, this is a favorable and bold budget for the real estate industry. A massive boost for infrastructure will not only benefit the realty sector but also help other industries create large scale employment in the economy. The government’s focus on the infrastructure development of tier 2 and 3 cities will surely make these cities ready for the next round of urbanization.
What is PMAY?
Inclusive growth is essential to sustain India’s growth momentum. The government through various stimulus measures and subsidy schemes continues to provide encouragement to the rural economy to promote such growth. The budget for this year is no different from previous years and is mainly focused on providing further stimulus to this segment through its affordable housing mission. The Pradhan Mantri Awas Yojana scheme aims at improving infrastructure in rural areas, it also focuses on improving their daily lifestyles by providing basic facilities and necessities such as toilets, electricity and LPG connections to the masses.
‘Housing for All’ Initiative
In view of the housing shortage in India and the objective ‘Housing for All by 2022’, the announcement of new reforms for Rental housing will be a big boost to the realty sector. The Pradhan Mantri Awas Yojana scheme was launched in 2015 with an aim to build houses for the economically weaker classes. The execution of the scheme in the first phase has been fairly promising and in the second phase of this scheme (PMAY-G), the government is planning to build 1.95 crore houses for the eligible beneficiaries. The 3-year target appears to be realistic, considering that more than 1.5 crore rural homes have been completed in the past five years.
How to apply for PMAY?
For PMAY, apply online and avail all the benefits the scheme has to offer. As per the PMAY subsidy scheme, the maximum loan tenure is 20 years with no minimum period limit to continue the housing loan. With the help of a housing loan EMI calculator, you can also calculate the EMI that you will be required to pay back. The development of houses should bring a demand boost for the entire segment of building materials. Companies operating across various sectors like cement, tiles and sanitary ware, paints and construction chemicals will benefit from this move. Strict implementations of GST would further strengthen the growth prospects and indicate well for the organized players in this segment. The need of the hour is to lower the interest rates which will help resolve liquidity crisis and boost housing demand.
Moving forward, we expect continued momentum for Indian realty to attract new investments and hope that the government brings more positive measures for the growth of the Indian real estate sector to fuel India’s growth engine. This concludes that the Union budget 2019 has set the stage for the economy to achieve new heights through its reform measures.