Budget 2024-25 Overlooks The Shrinking Affordable Housing Segment, Say Developers

The RBI’s decision to slash the repo rate by 25 basis points comes as a breath of fresh air for potential homebuyers as this will have a positive effect on home loans and boost buying capacity of masses significantly. This move supports the sentiments of homebuyers and boost the housing demand as the home loan EMIs will be reduced.

According to Deputy Chief Minister Eknath Shinde the Maharashtra Housing and Area Development Authority MHADA will build around 8 lakh affordable houses over the next five years, which will also include housing for textile mill workers, dabbawallas (workers in the lunchbox ferrying service in Mumbai) and police personnel.

The announcements made by Finance Minister Nirmala Sitharaman in the recent budget has given real estate players a new ray of hope of increased demand for residential, commercial, and hospitality investments in major tourist destinations across the country. The minister has announced development of top 50 destinations, encouraging Buddhist and medical tourism, and MUDRA loans for homestays.

On January 7, 2025, a fire erupted in the Pacific Palisades neighbourhood, which is assumed to be driven by severe Santa Ana winds and drought conditions. It rapidly consumed thousands of acres, destroying numerous homes, including those of celebrities like Paris Hilton and Bella Hadid.