Post Budget Reaction from industry Leaders

Mr Parveen Jain, NAREDCO Chairman

The Budget 2023 in Amrit-Kal is quite progressive and comprehensive which has taken into consideration all aspects for an overall development and economic growth of the Nation.

        For the progression of the Real estate sector, emphasis has been laid on Sustainable cities, Urban planning Reforms, TOD ( Transit Oriented development), Affordability, Urban infrastructure, Incentivised schemes, Urban infra fund for cities, special emphasis on more development of Tier-II & Tier-III cities, dry & wet waste management, transformation of Man holes to machine mode holes & Green Growth.

        Green Growth in the Budget 2023 is the mission with the target of Net Zero carbon emission, production of more Green Hydrogen & Green Energy, Low carbon emission, Less dependence on fossil fuels, Energy transition for renewable Energy, Grid integration, Green Credit programmes, Go Green schemes like PM-Pranam scheme, Go -Vardhan scheme, Green Agri-drive, Amrit-Dharohar, emphasis on Bio-Plants for Bio mass, Bio Diversity.

        Reduction in Income Taxes will indirectly lead to more savings and more investments and buying in Housing and Real estate sector. All the above factors shall lead to more job creation, more investment & buying, progression for the Real estate sector.

Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

A tailor-made budget for the salaried and the middle class

The union budget presented by the honourable finance minister, Smt Niramala Sitharaman emphasizes growth and comprehensive development with a view to enhancing citizen welfare. The government in this year’s budget has made allocations to expand infrastructure, healthcare, education, skilling, rural welfare, and digitalization. The government is investing heavily in capital expenditure to invigorate the Indian economy and create new job opportunities.

The central government has reduced taxes across all tax brackets, enabling the middle class to save more of their income. The increase in the income tax exemption rebate from Rs 5 lakhs to Rs 7 lakhs will benefit thousands of people by providing more disposable income in their hands. Lowering personal taxes will provide prospective homeowners with additional funds that they can put towards acquiring a home, which is a solid and reliable investment.

The government has reinforced its commitment to providing housing for all by substantially increasing the funding for the Pradhan Mantri Awas Yojana, from Rs 47,500 crores last year to Rs 79,000 crores in 2021-22. Through this initiative, the government aims to fill the gap between those without decent housing and those who do, by providing a better housing subsidy. This extra funding will help ensure that both urban and rural homes are built quickly and up to the required standards.

The government has also increased the total capital expenditure on infrastructure development by 33%, accounting for 3.3 percent of our GDP at Rs10 lakh crore. This will have a positive impact on the Indian industry and create employment opportunities.

The Centre has offered 50-year interest-free loans to state governments for another year, with a total expense of ₹1.3 lakh crore. This initiative will stimulate infrastructure development in each of the states and also help promote local industries.

Mr. Saurabh Garg, Co-Founder and CBO, NoBroker

The announcement of the Union Budget 2023 brings positive hope for the housing sector. With the immense rise in allocation towards Pradhan Mantri Awaas Yojana to Rs 79,000 crore for the next fiscal, this is expected to boost the development of more low-income and affordable housing across the country.

However, few announcements in the budget appear to be aiming toward better targeting of tax concessions and exemptions. For instance – the FM has proposed to limit the deduction from capital gains on residential property investment under sections 54 and 54F at 10 crores. Till now, there was no such limit and typically, HNIs would utilize this avenue to reduce their Capital Gains tax liability. However, it is now proposed to substantially limit the benefit available on capital gains tax arising from HNIs.

The increment in the tax rebate limit to Rs 7 lakh and the reduction in the tax structure across all slabs would definitely help pump in more liquidity in the markets. Individuals would now have more disposable income to save and invest in homes which would further propel the growth prospects of the sector.

The budget is positive from an infrastructure and investment point of view.

Nirav Dalal, Executive Vice President- Business Development and Chief Investment Officer, Shapoorji Pallonji Real Estate

We welcome the measures announced by Finance Minister Smt. Nirmala Sitharaman in the Union Budget 2023–24, which indirectly aims to boost the real estate sector’s growth while also providing relief to consumers. The proposed increase in the income tax exemption limit to Rs 7 lakh will help boost real estate investment. This tax break will encourage homebuyers to invest more while simultaneously increasing revenue. Meeting the long-standing demand of the real estate sector, the cap deduction for capital gains on residential housing investment is set at INR 10 crore, which will undoubtedly benefit the real estate industry. As one of the important measures to support the market, there has been a 66% increase in the allocation to 79,000 crores in the Affordable Housing Fund (PMAY). The budget also has an emphasis on developing smart cities. The budget has allocated the Urban Infrastructure Development Fund (UIDF), which will be managed by the National Housing Bank and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities. The infrastructural development in these untapped markets will help the development of real estate here.