Union Budget 2022-23: Post-Budget Reactions from Real Estate Experts

New Delhi, February 02, 2022:

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI

“The Government has once again laid an emphasis on infrastructure in the Union budget announced today. Infra spending in PPP mode seems to be the thrust of the Union Budget 2022. The Budget made several announcements to spur the growth of the infrastructure sector in the country that includes the announcement of 25,000 km of new highways, Gati Shakti Masterplan for expressways, 100 new cargo terminals for multi-nodal logistics, and development of urban metro systems. This will propel the growth of the real estate sector and will also help drive demand for the warehousing and logistics sector across the country. The Government also extended the ECLGS up to March 2023. This will go a long way in supporting the MSME sector and revive industrial activity.

The good news for the real estate sector has been the allocation of Rs. 48000 crore for PMAY along with 80 lakh houses expected to be completed by 2023 across the country. This has yet again highlighted the Government’s vision of Housing for All. The move will not only boost the affordable housing segment but will also encourage a lot of homebuyers to buy their dream homes.

Through Ease of Doing Business 2.0, the Government continues to encourage digitization and fin-tech innovation. The focus on creation of digital infra, single portal for ease-of-doing business and digital skilling will strengthen the start-up ecosystem.

Overall, a progressive budget with the Government’s emphasis on job creation, building a robust infrastructure and revitalizing the economy.”

Mr. Jitesh Lalwani, President, HomeSync Real Estate Advisory

”Finance Minister Nirmala Sitharaman presented a growth-oriented Budget by hosting several measures to encourage leading sectors of the economy. Looking at the medium and long-term goal for the overall economy, it seems a desirable budget where the efforts will be made to increase private capital in the infrastructure sector. The announcement of 25000 kms of new highways along with Gati Shakti Masterplan for Expressways will pull forward the economy and will lead to more jobs and opportunities for the youth. In a boost to affordable housing, FM announced Rs 48,000 crore towards the Affordable Housing Scheme (PMAY) and will build 80 lakh homes for identified eligible beneficiaries, and identify eligible beneficiaries for 60,000 houses under PMAY in rural and urban areas that will directly support the Government’s mission of Housing For All. Although, the real estate sector was further eyeing sops such as relaxation in GST on under-construction properties, a reduction of GST on key raw materials, a higher interest exemption for homebuyers and above all, the long-awaited demand of granting ‘infra’ status to the sector; there were a few big announcements which will augur growth across the major sectors of the country.”

Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
”As anticipated, in today’s Budget 2022, Union Finance Minister Nirmala Sitharaman addressed the nation with the overall focus on national infrastructure development that will act as a catalyst to growth. It was a neutral budget where FM talked about rolling out the next phase of ease of doing business and ease of living. Besides, there were various implementations of reforms to boost digitization that might grab some attention from the NRIs to invest in the housing sector from around the globe. However, the major announcements on the economic front will surely benefit the overall GDP of the country in the near future.”

Mr. Bhushan Nemlekar – Director, Sumit Woods Limited 

”The real estate sector had high hopes from the Budget 2022. 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 budget allocation of Rs 48,000 crore for the PM Awas Yojna. In urban and rural areas, 80 lakh houses will be constructed for identified beneficiaries for affordable housing under the PM Awas Yojana and 60,000 houses will be identified as beneficiaries. Also the Government has given a lot of importance on urban planning by showing it’s desire to set up a high-level committee for urban planners and economists. This will lay a foundation for Tier 2 & Tier 3 cities to transform into centres of economic growth.  It is undoubtedly a progressive budget especially with its emphasis on building infrastructure for the country.”

Corporate Comm India (CCI Newswire)