Budget 2024: Noida Developers Banking on Government’s Push to Metro Expansion, PMAY Scheme

Noida, February 4: The Centre's push to expand metro lines, airports and scheme to help the middle class buy their own house are among measures announced in the interim budget that will boost the real estate sector, say developers in Noida and western Uttar Pradesh. The developers hailed the interim budget presented on February 1 by Union Finance Minister Nirmala Sitharaman and announced the government's plan to build two crore more homes for rural poor in the next five years under the Pradhan Mantri Awas Yojna (PMAY). She also announced a scheme to help deserving sections of the middle class living in rented houses, slums or chawls, and unauthorised colonies to buy or build their homes.

"We have a fast-expanding middle class and rapid urbanization is taking place. Metro Rail and NaMo Bharat can be the catalyst for the required urban transformation. Expansion of these systems will be supported in large cities focusing on transit-oriented development," Sitharaman said. Union Budget 2024-25 Key Takeaways: From Tourism to Income Tax and More, Highlights of Nirmala Sitharaman's Interim Budget Speech.

CREDAI Western Uttar Pradesh Secretary Dinesh Gupta said the revision of the fiscal deficit, increased tax receipts, doubling of the GST tax base, and other indicators of robust economic growth were all highlighted in the union budget and real estate will benefit from a strong economy.

"It is a commendable step that the Centre will develop better policies and incentives to support mid-income housing. An additional aspect to consider is the ongoing development of infrastructure through proactive measures. Plans to construct additional airports, train lines, metro routes, EV facilities, etc have been announced. Naturally, this will result in increased demand for real estate in western UP, including Noida," Gupta said.

Sanjay Sharma, Director of SKA Group, said the 11 per cent increase in the capital expenditure by the government will definitely accelerate growth and prospective buyers' outlook towards the real estate sector is expected to be on a continued upward trajectory as the government has stabilized the income tax slab. Union Budget 2024-25: Indian Economy Witnessed Profound Positive Transformation in Last 10 Years, Says FM Nirmala Sitharaman (Watch Video).

"The government's stance regarding Namo Bharat is very positive, which would directly benefit Noida, Greater Noida and other cities. Along with this, the expansion of the UDAN scheme in Tier 2 and 3 will accelerate the development of these regions as well," Sharma added.

Notably, a greenfield airport is under construction in Jewar near Noida, while a multi-modal cargo hub is upcoming in Greater Noida. Plans are also afoot to connect the upcoming airport with an RRTS line, metro line, and UP's first bullet train, according to a UP government official. The metro rail system in Noida, Greater Noida is also scheduled for expansion in three corridors, the official added.

Vikas Bhasin, Chairman and Managing Director, Saya Group said the increase in capex by 11 per cent will surely enhance growth in the market and the plans to promote Namo Bharat will also bring ease in connectivity among various cities, increasing the demand for property investments.

"The advent of metro rail and rapid rail has already been attracting massive investors and the trend is expected to continue over the next few years as well. Commercial real estate's development would stay on the upward trajectory with the positive environment created by these factors," he said. Himanshu Garg, Director, RG Group said the interim budget indicated that the government is eager to promote widespread growth with the middle-class housing programme.

"The government's emphasis on affordable and urban housing is demonstrated by the significant 66 per cent increase in funding, amounting to Rs 79,000 crore for the Pradhan Mantri Awas Yojana scheme in FY24," Garg added.

Amit Modi, Director County Group, said it was expected to be fiscally prudent given that it was an interim budget, but what has been a welcome surprise is the government's continuous importance towards PMAY. Salil Kumar, Director Sales and Marketing, CRC Group said with ample focus on infrastructural projects such as metro and rapid rail, the connectivity would also contribute to the overall development.

Yash Miglani, MD, Migsun Group, said with the continued focus on the development of tier-2 and tier-3 cities, the government has enhanced the growth of these regions with the construction of airports and other connectivity modes to improve accessibility and visibility. "This trend is expected to bring a further boom in real estate investments with increasing disposable income of prospective buyers," Miglani said.

Pawan Sharma, MD, Trisol RED said the budget is expected to bring an overall boom to all the relevant industries as well. Ankush Kaul, chief business officer, Ambience Group said the increased spending proposed by the government on infrastructure will drive the demand for residential, commercial and retail spaces in the region.

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