How Budget 2024’s allocation affects rural infrastructure and housing markets

The recently announced Budget 2024 has introduced a significant allocation of Rs 2.66 lakh crore towards rural development including infrastructure improvements. Additionally, the government has outlined plans to construct three crore more houses under the Pradhan Mantri Awas Yojna (PMAY) in both rural and urban areas. These measures reflect the government’s focus on enhancing living standards and addressing housing needs.

Rural development allocation

The allocation of Rs 2.66 lakh crore for rural development aims to boost infrastructure in rural areas. This investment in roads, schools, healthcare facilities, and other essential services is expected to increase property values and make rural areas more appealing for real estate investments.

PMAY housing initiatives

The plan to build three crore additional houses under the PMAY scheme seeks to address the housing shortage and provide affordable housing solutions. This initiative may offer more opportunities for individuals to acquire homes at subsidised rates, particularly benefiting first-time buyers and those with lower incomes.

Real estate investment considerations

Exploring rural markets

Emerging rural markets are likely to experience growth due to substantial investments in infrastructure. Potential investors may find opportunities in these areas as property values rise with improved infrastructure.

Leveraging PMAY benefits

The expansion of the PMAY scheme could provide financial incentives for homebuyers making home purchases more affordable. It is advisable to review the eligibility criteria for these schemes to take advantage of available subsidies.

Focus on infrastructure projects

Investments in regions with planned or ongoing major infrastructure projects, such as new highways or metro lines may yield favourable outcomes. Improved connectivity can enhance the attractiveness of these areas for property investment.

Considering long-term potential

The budget’s emphasis on rural development suggests potential shifts in investment opportunities from traditional urban areas to rural regions. Evaluating the long-term growth potential of rural areas especially those with planned infrastructure improvements may be beneficial.

Evaluating affordable housing options

The push for affordable housing is expected to increase the availability of lower-priced housing projects. Exploring these options, particularly in urban areas, could provide cost-effective solutions with modern amenities.

Staying informed

The real estate market is influenced by various factors including government policies and economic conditions. Staying informed about market changes and adapting investment strategies accordingly can help in making well-informed decisions.

Conclusion

Budget 2024 brings several opportunities related to rural development and affordable housing. By considering emerging markets, leveraging PMAY benefits, focussing on infrastructure projects, evaluating long-term potential and exploring affordable housing options individuals can make informed decisions in the evolving real estate market. Regular research and strategic planning will be important for navigating these opportunities effectively.

The author is director, Unity Group. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.