Mumbaikars are always more comfortable getting their home search or purchase off to an auspicious start and the real estate markets are already in a positive mood on the eve of Ganeshotsav this year with good reason. During the past few months, policy announcements at periodic intervals, which are expected to have a positive impact on the realty sector and also benefit home buyers, have given association heads as well as analysts reason to rejoice on a regular basis.
Most recently, the National Real Estate Development Council (NAREDCO) has welcomed the Union Cabinet's approval of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 scheme. With an investment of ₹10 lakh crore and a substantial government subsidy of ₹2.30 lakh crore, the PMAY-U 2.0 Scheme aims to facilitate the construction of one crore houses for urban poor and middle-class families over the next five years.
The introduction of new components such as Redeemable Housing Vouchers and the Technology Innovation Grant are noteworthy additions to the scheme. These elements will not only make housing more accessible but also promote the adoption of innovative and sustainable construction technologies.
Commenting on the latest development, G Hari Babu, National President of NAREDCO, stated, "The approval of PMAY-U 2.0 is a landmark decision that will revolutionise urban housing in India. This scheme's holistic approach, addressing construction, purchase, and rental housing needs, coupled with its focus on innovation and sustainability, will create a robust and inclusive housing ecosystem. NAREDCO pledges its full support to the government in realizing the objectives of this transformative initiative."
The PMAY-U 2.0 Scheme includes several key components: Beneficiary-Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and an Interest Subsidy Scheme (ISS). These elements are designed to address various aspects of affordable housing and rental needs. The scheme also introduces an increased Credit Risk Guarantee Fund, from ₹1,000 crore to ₹3,000 crore, to enhance credit risk guarantees for affordable housing loans. Additionally, the Technology & Innovation Sub-Mission (TISM) will promote modern, green technologies and building materials for faster and higher-quality construction.
PMAY-U 2.0 is expected to significantly boost the real estate sector, creating numerous opportunities for developers, contractors, and allied industries. It is expected that the scheme's emphasis on public-private partnerships and the involvement of private sector projects will further stimulate growth and innovation in the industry.
Another development that is likely to impact real estate in the Mumbai Metropolitan Region (MMR), is the Union Cabinet approving the Thane Integral Ring Metro Rail Project (IRMRP). Scheduled to commence operations by 2029, it will create a vital link between Thane's remote residential and commercial hubs — Wagle Estate, Ghodbunder, Kolshet, and Saket — and both the new and old Thane railway stations.
The project will also connect with Mumbai and Kalyan through the ongoing metro lines 4 and 5. Out of the 22 stations planned, the new and old Thane railway stations will be constructed underground, ensuring seamless integration with the existing urban infrastructure.
Rajan Bandelkar, Vice Chairman, NAREDCO, opined, "The Thane IRMRP is a significant milestone that will undoubtedly catalyse the real estate market in Thane. The enhanced connectivity provided by this ambitious project will transform Thane into an even more attractive destination for both homebuyers and investors. As commuting times reduce and accessibility improves, we anticipate a surge in demand for residential and commercial spaces, particularly in areas around the proposed metro stations.”
According to the NAREDCO Vice Chairman, Thane IRMRP aligns with the vision of creating well-connected, sustainable urban centres, and will play a pivotal role in elevating Thane's status as a thriving real estate hub. “We expect a positive ripple effect on property values, leading to accelerated growth and development in the region. As the metro project unfolds, it will not only uplift the real estate market but also contribute to the overall socio-economic development of Thane, further solidifying its position as a prominent residential and commercial hub in the MMR” he emphasised.
According to Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory Pvt Ltd, the Union Cabinet approval for Thane IRMRP is a game-changer for its real estate market. “This project will not only enhance connectivity across key residential and commercial areas but will also bring a transformative impact on property values and development potential in these areas. With the metro seamlessly linking old and new railway stations and integrating with existing metro lines, we anticipate a significant uptick in demand for both residential and commercial spaces. The improved accessibility will make Thane even more attractive to homebuyers and investors, fostering sustainable growth and solidifying Thane's position as a preferred destination within the Mumbai Metropolitan Region,” he affirmed.
These approvals are expected to boost real estate development and demand at a macro and micro level across the MMR. The timing, as they say, is just right too!
