The Union Budget 2022-23 could be a significant moment for the real estate industry as it appears to be forward-thinking and supportive, with a focus on affordable housing and infrastructure development. The pandemic has caused problems for India’s real estate market, including a decrease in property sales, site visits, and project delays over the past few years. However, the Finance Minister has announced several measures that are expected to have a positive impact on the industry. It is admirable that this budget is a modern and inclusive blueprint that lays the foundation for the future.
According to industry experts, the Union Budget 2022-23 is a budget that encourages growth and recognizes the significance of the real estate sector in the Indian economy. It is expected to benefit younger generations, women, and farmers, while also boosting productivity and accelerating economic growth and development, which bodes well for the real estate industry. The budget measures have specifically boosted the affordable housing sector and reduced anti-dumping duties on steel.
The upside of the budget for the real estate sector
- The real estate industry may benefit from the Finance Minister’s prediction of a 9.2% GDP growth in 2022-23 and the planned capital investment of Rs 7.5 lakh crore, which could increase market liquidity. The Gati Shakti Master Plan, with an initial outlay of Rs 20,000 crore, also aims to boost economic growth through transportation and logistics development.
- The real estate sector is recovering from the pandemic and has requested measures to increase demand for affordable and rental housing. The Union Budget 2022-23 includes Rs 48,000 crore for affordable housing under the Pradhan Mantri Awas Yojana, which will benefit around 80 lakh families.
- The Union Budget 2022-23 highlights the importance of sustainable urban planning for the development of mega-cities, Tier 2 and Tier 3 cities. The government is collaborating with states to build urban capacity and has proposed five centres of excellence for urban planning. A high-powered committee of experts will provide policy recommendations and implementation strategies for urban infrastructure development.
- The Union Budget 2022-23 recommends reducing the Alternative Minimum Tax and surcharge for cooperative societies to alleviate their financial burden.
- Infrastructure projects, such as the expansion of highways, the Nal Se Jal scheme, and river link projects, will contribute to the country’s overall growth and benefit the real estate sector.
The Union Budget 2022-23 has been welcomed by the real estate industry as a forward-thinking and supportive budget that recognizes the sector’s importance in the Indian economy. The budget’s focus on affordable housing, infrastructure development, and sustainable urban planning is expected to boost economic growth, increase market liquidity, and improve the livelihoods of millions of people. With the government’s commitment to implementing policies and strategies that foster growth and development, the future looks bright for India’s real estate industry.