Dr. Atul Goel, MD, Goel Ganga Group & President (Elect.), NAREDCO Pune
India’s Union Budget 2022-23 has brought forth a host of benefits across industries. For real estate, a reduction in corporate surcharge from 12% to 7% is good news for the developer community. The issuance of the digital rupee by RBI using blockchain technology will render more transparency to real estate transactions. Affordable housing has also got a boost with Rs 48,000 crore allocated for the completion of construction of 80 lakh houses under PM Awas Yojana. Rs 60,000 crore have been additionally allocated for the Har Ghar Nal program. Last but not the least, an additional allocation of Rs 19,500 crore for manufacturing solar modules augurs well for real estate.
Siddharth Maurya, Resource Specialist, Expertise Real-Estate And Fund Management
The Union Budget has once again demonstrated the government’s strong commitment towards systematic urban growth with a focus on cleantech, sustainable urban living, and better governance. GOI will build the right balance between large megacities as well as tier- 2 & 3 cities, which is a welcome move. The development agenda will also focus on creating mass transit systems and encouraging EVs which will help in reducing overall carbon footprint and give a better living experience to our city dwellers. Meanwhile, we will also like to thank the government to start 5 new urban development institutes in India, as it can herald a new beginning in urban development.
Annuj Goel, MD, Goel Ganga Developments
In the backdrop of dropping Coronavirus cases, Ms Nirmala Sitharaman presented an enabling, positive and futuristic Union Budget 2022-23. The real estate sector has faced severe headwinds in the recent past but is hopeful of solid recovery with several key budget announcements. With a focus on the construction of over 80 lakh affordable houses by the year 2023, focus on urban development via the concept of megacities and enhanced focus on Tier 2 and Tier 3 cities will provide the much-needed impetus to the real estate sector.
As steel is the backbone of the construction sector, the budget announcements have extended the budget scrap duty by another year. It is in addition to the scrapping of the anti-dumping duty on stainless steel. Reduction in corporate tax for co-operative societies from 18 per cent at present to 15 per cent will reduce the burden on the ancillary support industries related to the construction and real estate sector. Overall, this is a progressive, supportive, and budget with an increased focus on infrastructure development.
Pradeep Misra, CMD, Rudrabhishek Enterprises Limited
While keeping the focus on growth, the Hon’ble FM has ensured that the budget is also inclusive. It takes care of the specific sectors such as hospitality and education that have been deeply impacted by the pandemic. The special focus on the PM Gati Shakti scheme will have a multiplier effect on the economy. The government’s target of expanding the road network by 25000 kms through an investment of INR 20000 crore in 2022-23 will strengthen the infrastructure at the grassroots levels. The announcement of the Parvatmala scheme should fuel the development of eco-friendly tourism in the hilly, remote and ecologically fragile areas. The investment of INR 60000 crore for the tap water connections scheme will be a boon for millions of Indians, especially among the economically weaker section. Additionally, the 400 Vande-Bharat trains will boost land transport. The crucial thing will be rolling out of projects at a quicker pace and ensuring that the public-private partnership programs are designed in a way that supports the companies involved in the infrastructure sector, specifically the MSMEs.
Harpreet Singh Hora, Group Director, Realistic Realtors
The government’s allotment of 48,000 crores to build around 80 lakh affordable homes is a positive initiative for real estate. The expansion of highways by 25,000 kms will catalyze the development of new realty clusters and allied industries. The boost to the infrastructure at the grassroots levels will fuel the demand for the sector in Tier 2 & 3 cities. Furthermore, the establishment of the high-level committee for Urban planning will greatly enhance the ease of doing business and result in raising the standards of living in Indian cities. The budget will sustain the momentum gained in the past few months for real estate and gradually increase it during the FY 2022-23.
Dhruv Agarwala, Group CEO, Housing.Com, Makaan.Com And Proptiger.Com
“In a Budget that aspired to boost private consumption and create jobs to improve the economy in the backdrop of the third wave of the coronavirus pandemic, a variety of measures have been announced by Hon’ble FM Smt. Nirmala Sitharaman would go a long way in meeting the twin targets. The provision of Rs. 48000 crore under Prime Minister Awas Yojana for completion of 80 lakh houses will help the government in achieving its target of Housing For All. The government’s proposal to cut down the approval time related to land and construction will bring ease of doing business. The real estate sector will also be benefitted from announcements related to industrial & logistics and data centres, enabling them to aggressively diversify into these two upcoming asset classes in the overall real estate sector. A lot of emphasis has also been given to better land record management. Steps such as tax exemption to start-ups extended to March 2023 will go a long way in invigorating the entrepreneurial spirit in the country.
However, the industry did expect some tweaks in the tax slab, a move that would have resulted in greater savings for people, which would have consequently boosted consumption, especially in the real estate sector. The Budget has also been largely mute on any direct support for the housing sector.”
Manoj Gaur, CMD, Gaurs Group And Vice-President, North, CREDAI-National.
Pradeep Aggarwal, Founder And Chairman Of Signature Global Group And Chairman, Assocham – National Council On Real Estate, Housing And Urban Development
The Government has always focused on affordable housing, and in this Budget, the announcement was made regarding the allocation of Rs 48, 000 crore for PM Awas Yojana, and completing 80 lakh houses in 2022-23.
It was a balanced budget that took care of the overall economic development, including improving multi-model transportation in cities and increasing the highways by 25000 km. The transportation improvement will generate employment in cities, leading to a growth in demand for housing. The affordable segment will also benefit from the announcement of the reduction of time for land and construction-related approvals in urban areas which was earlier a matter of concern for the industry. The Government has also talked about tier II and III cities and that it will work with urban planners to ensure that these cities witness economic growth and employment. The Government will also work with Financial Sector regulators to expand access to capital along with a reduction in the cost of intermediaries; this will help the sector have access to funds to finish projects on time. Through, this a common man can complete his dream to have a home.
Amarjit Bakshi, CMD Central Park
We anticipated a budget that is both people and business-friendly; the current Budget made it clear that economic growth is the prime focus as the Economic Survey projected a GDP growth of 8-8.5 per cent in the next fiscal. The emphasis on improving transport infrastructure, including highways, will go a long way in creating sustainable pockets of real estate development. Though there was no announcement related to the sector, we are hopeful that job creation and the announcement of Ease of Doing Business 2.0 will lead to increased demand.
Uddhav Poddar, MD, Bhumika Group
This year’s budget focus was more on boosting the overall infrastructure, urban planning etc. not just in metros but also to Tier II-III cities. The measure of setting up a high-level committee for urban planners and economists to be formed for recommendations on urban capacity building, planning implementation, and governance is a giant leap to introduce modern urban planning structures. Overall, the Union Budget 2022-23 had a mixed bag of announcements for the real estate sector, much was expected on the terms of single window clearance, industry status and tax incentives which did not come through.
Nayan Raheja, Raheja Developers
The real estate sector’s long-standing demand has not been addressed in Budget 22-23. We’ve been requesting industry status for the entire sector as well as single-window clearance to ensure smooth operations, but the government has yet to respond. Overall, Hon’ble FM’s budget announcements appear to be a mixed bag from a real estate standpoint. While the anticipated expansion of smaller cities and infrastructural improvements can be considered as favourable developments for the sector
Amit Modi, Director ABA Corp, President Elect, CREDAI Western UP
The sector had hoped for some tangible announcements like industry status and GST input tax credits for developers in this years Budget, but these did not happen. At the same time, we welcome Rs 48, 000 crores as allocation for PM Awas Yojana and identification of nearly 80 lakh households or the affordable housing scheme in 2022-23.
We also look forward to recommendations of the government formed a high-level committee for urban planners and economists to be formed for urban capacity building, planning implementation, and governance.
Following a challenging year, it was critical to allocate resources to job creation and the strengthening of employment-creating industries, which the government has attempted to do, but the real estate sector is one of the largest employers in the country had hoped for more fiscal and policy support to not only bounce back from the pandemic induced slowdown but also be a sizeable contributor to governments 60 lakh job creation target and $5 trillion economy scale
Abhishek Bansal, Executive Director, Pacific Group
We congratulate the FM for coming up with a Budget with a focus on overall economic health; the announcement will lead to better-earning opportunities for people directly impacting the retail sector. We can see the retail and commercial segment moving to more Indian cities as infrastructure will improve after various announcements in the Budget. Though there was not much in terms of tax savings for people, overall economic growth will lead to increased income that will support retail consumption.
Ankit Kansal Founder And MD, 360 Realtors
Despite very high hopes, the budget so far has been a little disappointing for the Indian Real Estate industry. There has been a slew of sector-specific policies for industries such as chemicals & fertilizers, gems & stones, steel, defence, animation, electronic appliances, etc.
Meanwhile, nothing very concrete has been announced about real estate. However, there have been a couple of positive outcomes. Firstly GOIs commitment to further develop urban infrastructure in a robust but sustainable fashion is a welcome step.
Secondly, GOI has rationalized custom duties for a host of steel products including steel scarp for secondary steel producers. Lowering steel prices might help optimize input costs. Another icing on the cake has been the Indian economic comeback.
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