The 2024 Union Budget prioritizes urban development as one of its key areas. This includes significant measures to boost affordable housing, land reforms, and urban planning, all aimed at transforming the real estate sector and improving living conditions in cities.
The government has allocated ₹10 lakh crore for the development of 3 crore additional houses under the Pradhan Mantri Awas Yojana (PMAY). This investment will boost construction activities in both urban and rural areas, benefiting related sectors.
A significant portion, PM Awas Yojana Urban 2.0, targets the housing needs of one crore urban poor and middle-class families, with ₹2.2 lakh crore in Central assistance and interest subsidies for affordable loans over the next five years. Rationalising stamp duty, especially for women homebuyers, is expected to enhance home-buyer sentiment in major cities.
The Budget promotes the creation of ‘Cities as Growth Hubs’ by integrating economic and transit planning with organised development in peri-urban areas. This strategy is designed to boost economic growth and facilitate well-planned urban expansion.
A new framework for brownfield redevelopment will be launched, featuring enabling policies and market-driven strategies. This initiative is set to regenerate existing urban areas, enhancing their sustainability and attractiveness for investment.
Transit-Oriented Development (TOD) plans will be developed for 14 major cities to optimise land use along public transit routes. This initiative aims to enhance public transportation accessibility and promote more sustainable and efficient urban development.
The government will facilitate rental housing with dormitory-type accommodations for industrial workers through Public-Private Partnership (PPP) mode, supported by Viability Gap Funding (VGF). This initiative aims to promote industrial growth and stability in labour-intensive sectors while creating new opportunities for real estate developers specialising in rental and affordable housing. Policies will ensure efficient and transparent rental housing markets, benefiting both workers and the housing industry.
The government’s collaboration with State governments and development banks to enhance water supply, sewage treatment, and waste management in 100 major cities will significantly improve urban sanitation and water conservation.
By utilising treated water for irrigation and tank refills, these projects will address key environmental and infrastructure challenges, leading to cleaner cities and more sustainable water use.
The Finance Minister has advocated for States with high stamp duties to lower these rates and introduce additional reductions for properties bought by women. This reform is set to make property purchases more accessible and significantly enhance gender equality in property ownership.
Weekly ‘Haats’
The Budget proposes the creation of 100 weekly ‘haats’ or street food hubs in select cities each year for the next five years. This initiative is set to greatly benefit street vendors by offering them well-organised and supportive environments to enhance their businesses and livelihoods.
The Budget’s land reforms, including the introduction of ‘Bhu-Aadhaar’ for rural areas and the digitisation of urban land records, will boost credit access and agricultural services in rural regions while improving financial management and operational efficiency in urban areas.
The Budget’s comprehensive measures reflect the government’s commitment to transforming urban development, improving housing, and enhancing urban infrastructure. By focusing on housing, land reforms, and market regulations, the Budget aims to turn cities into growth hubs and improve the quality of life for millions of urban residents.
The writer is Partner, Shardul Amarchand Mangaldas & Co