Budget FY25 promises good days for AP’s realty sector: Credai

Big Hopes for Realty Sector:

• Increased housing allocation under PM Awas Yojana to benefit AP
• Special allocation for Amravati to revive construction and make it a sustainable smart city
• Focus on infra development with Rs11.11 lakh cr capital expenditure
• Credit guarantee schemes for MSMEs to create jobs and support Make in India

Vijayawada: The announcement to arrange a financial support of Rs 15,000 crore for Amaravati, to extend firm support for early completion of Polavaram project and focus given to urban infrastructure and housing in both urban and rural areas have raised the hopes of realty developers in Andhra Pradesh for good days ahead.

They expect that the demand will gain further pace not only in emerging hotspots like Visakhapatnam, Vijayawada-Amaravati and Tirupati, it will also pick up slowly in the semi-urban and mofussil areas across the State.

Responding to the Union Budget proposals, Credai AP general secretary Bayana Srinivasa Rao told Bizz Buzz that they are expecting a good demand for the realty sector in AP. The new sand distribution policy has already created a buzz on improvement in the construction market.

Rao congratulated Union Finance Minister Nirmala Sitharaman for presenting the Union budget 2024-25 that lays a development vision for the next five years. The focus on education, skilling, MSMEs and middle class with women, youth and farmers as key stakeholders in achieving the vision of “Vikasit Bharat.” The FM has made allocations to all key areas that are crucial for sustaining India’s growth story. He said under the PM Awas Yojana-Urban, the housing needs of one crore poor and middle class families will be addressed with an allocation of Rs 10 lakh crore. This will include the Central assistance of Rs 2 lakh crore in the next five years. The FM also made an announcement of allocations for completion of three crore houses in rural and urban areas to enhance ‘Ease of Living’ and dignity for crores of Indians. These announcements reiterate the government's focus on ‘housing for all’. Rental housing with dormitory type accommodation for industrial workers in PPP mode is the need of the hour.

He said the government continues to recognise the growing urbanisation and cities as growth hubs. Capital expenditure of 11.11 lakh crore i.e. 3.4 per cent GDP for infra will propel growth through infrastructure development and enhance connectivity across the country. Rao said MSMEs are growth engines of the country and the credit guarantee schemes for MSMEs in manufacturing announced today with a new credit assessment model and a guarantee cover of 100 crore will not only create employment but will also support the PM’s ‘Make in India’ vision and position India as a manufacturing hub for the world.

He said, "This budget ticks all the boxes that are crucial for sustaining growth and development. I congratulate the FM for presenting a forward-looking budget."

Rebuilding Amaravati

On the impact of budget on AP, L Srinath Reddy, Managing Director, Raminfo Limited said, “With the special allocation for Amravati in the budget 2024, the capital city is set to become one of India's most sustainable and livable cities. As a government-driven initiative, this development will be both sustainable and futuristic. The special allocation in Budget 2024 is a much-welcomed boost to this promising vision.” He said the construction sector in Amravati is poised for a significant revival, particularly in design and architecture.

This vision includes implementing digital technologies to promote environmental sustainability, renewable energy, and advanced cooling systems, establishing Amravati as both a 'planned city' and a 'smart city'. With exceptional educational institutions like VIT and top-tier healthcare facilities, Amravati is well-positioned for growth, he remarked.

"The technology-centric service sectors are also expected to flourish remarkably. The revival of the construction sector, which employs around 40 per cent of the workforce, will invigorate economic growth and increase tax revenues. This economic churn will attract more businesses, boosting the economy and GDP," Reddy opined.