The Real Estate Sector Reaction on Post-Budget 2023-2024

Mr. Himanshu Jain, VP – Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)

The Union Budget 2023-24 continued the government’s focus on the India growth story. The government’s decision to increase the PMAY Fund by 66% to Rs. 79000 crores will be a big boost for affordable housing and is a step in the right direction to achieve the government’s vision of ‘Housing for All’.  The Government’s continuous efforts to promote affordable housing to the masses will overall give a boost to the real estate sector in the long term. This budget has again focused heavily on infrastructure that will directly impact development of housing and increased demand especially in the Tier II & Tier III cities.

The increase in rebate limit to 7 lakh from 5 lakh in the new tax regime will prove to be a boon for first time home buyers. This additional savings will help them to invest in buying a property and fulfilling their dream of owning a home of their own.

Dr. Sachin Chopda, Managing Director, Pushpam Group

The Urban Infra Development fund (UIDF) proposed investment of Rs 10,000 crore to create infrastructure development in tier II and tier III cities will encourage home buyers to move away from metro cities and seek housing in less congested areas. Peripheral areas outside major cities will also be looked at by home buyers who plan to live there or use it as a second home or simply invest in property and earn rental income from their investment.

The announcement of 50 tourist destinations to be selected through challenge mode and developed as a whole package for domestic and international tourism is a welcome initiative by the government.   This has the potential to transform the area from a tourist destination into a second home or weekend getaway. This will help in offering job opportunities for the local people, developing the infrastructure, and improving the lifestyle of the people.

In its fervent attempt to make housing available to a larger section of people, the government has increased the rebate limit from 5 lakhs to 7 lakhs. These savings can spur investments in the real estate sector.

Mr. Samyak Jain, Director, Siddha Group

Budget 2023, rolled out by our Hon’ble Finance Minister, Smt Nirmala Sitharaman, has many positives for the Real Estate Industry.

An increase of 66% in the Prime Minister Awas Yojana (PMAY) fund outlay is a step in the right direction, which will not only enhance funding to the lower and affordable housing category, but also is in line with the Government’s ‘Housing for All’ policy.

The enhanced capital expenditure of 10 lakh crore for Infrastructure Development will also help fast track implementation of high-multiplier Government Infrastructure programmes within the country; thus supporting the Housing Sector in a big way. Additionally, the proposal to invite more Private Investment participation in Infra Development will pave way in creating better Infrastructure and improving the housing stock.

We are also very happy to note that the First-Time Home Buyers will now be able to better plan to purchase their First Dream Home, as there will be additional savings due to the increase in Income Tax rebate limit from Rs 5 lakh to Rs 7 Lakh in the new tax regime.

The Government’s Fiscal Support in increasing Digital Payments will also bring in further transparency in real estate dealings.

Mr. Bhushan Nemlekar – Sumit Woods Limited

“The real estate sector was eagerly looking forward to the Union Budget 2023-24 hoping for incentives and several rebates. Although the focus of the Union Budget 2022 was on overall economic development, the only thing to cheer for the real estate industry was the increase in outlay for PM Awas Yojana by 66% to over Rs 79,000 crore. This is expected to further boost the government’s programme to provide housing to the urban poor.

We are also pleased that the government has recognized infrastructure and investment as one of the 7 priorities that the budget is based on. The 33% higher capital outlay of Rs 10 lakh crore on infrastructure development will lay a foundation for Tier 2 & Tier 3 cities to transform into centres of economic growth.

There were heavy expectations for tax deductions and the increase in income rebate limit to Rs 7 lakh from Rs 5 lakh in new tax regime will encourage homebuyers to invest in real estate boosting the overall demand.

It is undoubtedly a progressive budget especially with its emphasis on economic growth and building infrastructure for the country.”

Mr. Varun Gupta, Whole-time director, Ashiana Housing Ltd

The Union Budget 2023 has given impetus to the real estate sector by announcing many important initiatives and programmes that are anticipated to help the sector. The Union Budget 2023 contains a number of significant announcements that are either directly or indirectly relevant to the real estate and infrastructure industries.

States and cities will also be urged to implement urban planning changes and initiatives to make their cities “sustainable cities of tomorrow.” This entails the effective use of land resources, sufficient funding for urban infrastructure, transit-oriented development, improved access to and affordability of urban land, and equal opportunity.

Furthermore, more opportunities will be generated for private investment in infrastructure as the recently formed Infrastructure Finance Secretariat will work with all stakeholders to encourage more private investment in infrastructure, particularly in sectors like power, roads, and trains that rely heavily on public funds.