Budget 2024: Housing Plans and Metro Line Extension to Transform Western UP

Developers in Noida and western Uttar Pradesh claim that the Center’s efforts to build more airports, metro lines, and a program to assist the middle class in purchasing a home are just a few of the policies outlined in the interim budget that would stimulate the real estate market.

The government’s proposal to construct two crore additional houses for rural poor people under the Pradhan Mantri Awas Yojna (PMAY) in the next five years was disclosed by the developers, who praised the interim budget delivered by Union Finance Minister Nirmala Sitharaman on February 1.

She also unveiled a plan to assist worthy segments of the middle class who were living in unapproved colonies, chawls, or leased homes in order to help them purchase or construct new residences.

The middle class is growing quickly, and urbanization is happening quickly as well. NaMo Bharat and Metro Rail have the potential to provide the impetus behind the necessary urban development. Large cities emphasizing transit-oriented development will encourage the expansion of these networks, according to Sitharaman.

A healthy economy would assist real estate, according to CREDAI Western Uttar Pradesh Secretary Dinesh Gupta, who noted that the union budget emphasized the adjustment of the fiscal deficit, improved tax revenues, doubling of the GST tax base, and other evidence of robust economic development.

The Center’s decision to create stronger regulations and incentives to promote mid-income housing is praiseworthy. The continuous improvement of infrastructure via proactive efforts is an additional factor to take into account.

There are plans to build more airports, rail lines, metro routes, electric vehicle facilities, etc. Real properties in western Uttar Pradesh, including Noida, would presumably become more in demand as a consequence, according to Gupta.

The government’s 11% increase in capital expenditure, according to Sanjay Sharma, Director of SKA Group, will undoubtedly accelerate growth, and since the government has stabilized the income tax slab, prospective buyers should expect the real estate sector to continue rising.

“The government is taking a very favorable attitude on Namo Bharat, which would help cities like Noida and Greater Noida. In addition, the growth of Tiers 2 and 3 will be expedited by the extension of the UDAN program, according to Sharma.

Notably, a multi-modal freight hub is planned for Greater Noida, and a greenfield airport is being built in Jewar, close to Noida. According to a UP government official, plans are also on to link the future airport with an RRTS line, metro line, and the first bullet train in the state.

The official also said that three more corridors would be added to the Noida, Greater Noida metro train system.

The plans to promote Namo Bharat would also make it easier for cities to interact with one another, which will raise demand for real estate investments, according to Vikas Bhasin, Chairman and Managing Director of Saya Group. The 11% rise in capital expenditure is expected to boost market growth.

“The introduction of quick and metro rail has already drawn significant investment, and it is anticipated that this trend will continue in the next years. With the favorable atmosphere these elements generate, the growth of commercial real estate will continue on its upward trajectory, he added.

The interim budget, according to Himanshu Garg, Director of RG Group, showed that the government is keen to support wider expansion via the middle-class housing initiative.

“The noteworthy 66% increase in funding, amounting to Rs 79,000 crore for the Pradhan Mantri Awas Yojana scheme in FY24, demonstrates the government’s emphasis on affordable and urban housing,” Garg said.

As an interim budget, Amit Modi, Director County Group, said that budgetary prudence was to be anticipated; nonetheless, the government’s ongoing emphasis on PMAY has been a nice surprise.

With a lot of emphasis on infrastructure projects like metro and fast train, connectivity will also help to the overall growth, according to Salil Kumar, Director of Sales & Marketing at CRC Group.

According to Yash Miglani, MD of Migsun Group, the government has accelerated the growth of tier-2 and tier-3 cities by building airports and other connection options to increase accessibility and visibility. This is in line with the ongoing emphasis on these cities’ development.

With potential purchasers’ discretionary income rising, “this trend is expected to bring a further boom in real estate investments,” according to Miglani.

According to Pawan Sharma, MD of Trisol RED, the budget is anticipated to result in a general upswing in all pertinent businesses.

The demand for residential, commercial, and retail spaces in the area would be driven by the government’s anticipated rise in infrastructure investment, according to Ankush Kaul, chief business officer of Ambience Group.