Stimulus package: Mega push to ’Housing for all’ — ₹18,000 crore allocated. What it means

In a mega push to government's 'housing for all' mission, the finance minister Nirmala Sitharaman on Thursday unveiled a ₹18,000-crore additional outlay for the urban housing scheme. This move will help finishing the real estate projects as well as create new jobs. This will be over and above ₹8,000 crore already provided in the Budget 2020.

" ₹18,000 crore would be provided over and above the Budget Estimates for 2020-21 for the Prime Minister Awas Yojana (Urban) through additional allocation and extra budgetary resources," finance minister Nirmala Sitharaman announced.

"The move will help start work on 12 lakh houses as well as complete 18 lakh houses," she further mentioned. This would create 78 lakh new jobs as well as demand for steel and cement, Sitharaman said.

What it means:

"The announcement is a step in the right direction towards fulfilling the vision of Housing for all, which will lead to generating employment along with supporting other industries, having a multiplier effect on the economy," Anshuman Magazine, chairman and CEO - CBRE India, South East Asia, Middle East & Africa.

"Today’s stimulus measures will aid job creation and infrastructure development in the country. Recognition of real estate as a core sector, creating ancillary industry demand and employment, and enhanced Pradhan Mantri Awas Yojana – Urban allocation, will boost the housing demand in the country," Shishir Baijal, chairman and managing director, Knight Frank India.

"The real estate sector sees a ray of hope in the focus of the government on affordable housing. The seriousness is visible as the target is ‘Housing for All by 2022’, and it seems possible as it takes only 114 days to complete the houses. We hope that further steps will follow that will augment this wish," Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com mentioned.

"The stimulus 3.0 package has focused well on the real estate sector which has significant multiplier impact on the economy due to its high employment generation capabilities," said Piyush Bothra, co-founder & CFO Square Yards.

The finance minister also announced that the differential of circle rate and actual price has increased to 20% from the earlier 10% for the sale of residential units of value up to ₹2 crore.

"The tax relief announced by FM Nirmala Sitharaman will help the buyers expedite their decision of owning a home. The decision by the Government is going to improve the sentiment further, and help reduce the unsold inventory in the sector," said Deepak Kapoor, director, Gulshan.