Budget 2022: Rs 48,000 crores under PM Awas, construction of 80 lakh homes to facilitate affordable housing

Finance Minister Nirmala Sitharaman announced that in 2022-23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban and Rs 48,000 crore is allocated for this purpose.

New Delhi: During the Union Budget 2022 presentation, Finance Minister Nirmala Sitharaman, on Tuesday (February 1), announced that 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural and urban areas. 

She also announced that in 2022-23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban and Rs 48,000 crore is allocated for this purpose.

Atanu Kumar Das, MD & CEO at Bank of India said, “ Union Budget’s focus on significantly higher public investment pump priming private investment will lead to multiplier effects across all segments of the real sector. ”

“The Union Budget 2022-23 is forward-looking and focuses on a long-term plan for the country with digitization, urban development, and sustainability at its core. For the real estate sector, the budget placed an outlay of Rs 48,000 crores under the Pradhan Mantri Awas Yojana, and construction of 80 lakh homes will facilitate affordable housing. This, yet again, showcases the government’s commitment on building affordable housing stock. However, we would have liked if there was more push on the demand side, such as extension & expansion of the credit linked subsidy scheme,” said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia, Colliers. 

Sanya Aeren, India’s Chief Advisor, Berkshire Hathaway HomeServices Orenda, "Budget 2022 is a budget towards Atma Nirbhar Bharat, where infrastructure, employment, clean energy, and digital have been given a major boost. 2,000 km of rail network under indigenous world-class technology KAWACH; new Vande Bharat trains can revolutionize Indian infrastructure and tourism in the next three years. The use of digital in agriculture, digital payments, infrastructure will help in increasing India’s status as a digital economy. INR 48,000 crore allotted for PM Avas Yojana will give more boost to affordable housing. The announcement by the FM on the Reserve Bank of India issuing its version of central bank digital currency, Digital Rupee is a revolutionary step and will position India on the global parameters of the digital economy."

"Focus on upskilling youth, national Tele Mental Health program for mental health, are commendable towards supporting today’s country’s youth," Aeren said. 

Anuj Puri, Chairman of ANAROCK Group, emphasised that the ECLGS scheme has been extended till March 2023 for the MSMEs. “Besides providing an impetus to the industrial development, this move is likely to have a rub-off effect on the real estate sector as well given that the catastrophic impact of the pandemic on this sector (MSMEs) slowed down the demand for affordable housing in 2021. We saw the home loan eligibility for many affordable housing buyers impacted by the pandemic due to loss of jobs and many MSMEs being shut down - resulting in significantly lower sales in this category,” he said. 

Puri also pointed out that to facilitate digital inclusion and aid fund transfer, 100% of 1.5 lakh post offices will come under the complete banking system. “This will enable smooth and transparent real estate transactions in the rural areas and also encourage loan disbursal to the semi urban population,” he added. Also Read: FM focusses on research on defence sector in budget 2022

Farshid Cooper, MD, Spenta Corporation said, "Budget 2022-23 is being looked at quite the booster for the infrastructure industry with focus on PM Gati Shakti National Master Plan for Multi-Modal Connectivity aimed at coordinated planning and execution of infrastructure projects mainly by bringing down the logistics costs. This will surely help the PPP model to emerge and provide employment and real estate development in smaller areas. With Affordable Housing attaining a major status in the last few years, construction of 80 lakh houses under PM Awas Yojana in the rural and urban areas will help the first time buyers with optimum schemes from the builders. While the budget has kept its long term goal of all inclusive growth at the heart of the budget, the real estate industry was hoping for some personal tax and home loans related announcements that would have benefitted the potential homebuyers and in turn the sector." Also Read: Union Budget 2022: Five key taxation points that impacts the common man, salaried class