Budget was presented by the Finance Minister Nirmala Sitharaman, on Tuesday, the real estate industry has reacted, and here’s what they think about the budget 2022.
By Varun Singh
The budget was presented we bring to you all that the realty industry thinks of the budget 2022 presented by the Finance Minister N Sitharaman.
Reacting on the union budget 2022 Dr. Niranjan Hiranandani, National Vice Chairman -NAREDCO and MD Hiranandani Group spelled that “As budget decodes Kaam, Kisan and Kamai as the focus, the outlays have comes out with a ‘budget for the economy’, with sustainability & infrastructure investment as its underlying theme. Rating it at 7/10, the Budget is clearly about complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition, bolstering investment and climate action – which augurs well for the nation.” “Industry welcomes much awaited focus to resolve long standing issues of reduction in approval timelines for land & construction. Emphasis laid towards modernisation and reforms in building byelaws, TDR reforms, urban town planning schemes, transit oriented multi modal corridors and transferable development rights. Impetus to urban development policy with enhanced capacity building will lead holistic development of urban cities. With rise in population & career mobility, focus on nurturing new smart tier 2-3 cities will result in a big boost for Real Estate infrastructure with cascading impact on additional job creation. Extension of PMAY scheme till March 2023 along with an allocation of Rs 48,000 crores outlay will further enhance affordable housing benefits 80 lacs new beneficiaries under middle class and economic weaker sections in urban areas. Single window portal for green clearances is a step to promote ease of doing business in augmenting sustainable development along with special mobility zones for electric vehicles. Granting of infrastructure status to data centres in lieu of impetus to data localization and protect data sovereignty is shot in the arm. This will enable the data centres industry to avail long & cheap credit financing in order to foster competitiveness to become a global data centre hub. Additional impetus on Gati Shakti, inclusive development for last mile connectivity, public investment, capital spending and financing of investments will augment steady economic growth.”
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.
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.
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.
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.
Jaatin Suratwala, Founder & MD, Suratwwala Business Group Ltd.
The Union Budget of 2022-2023 has come during times of uncertainty. The pandemic is obviously on its way out but the tail seems as unpredictable as the head two years back. Because of it, unemployment has reached unprecedented levels with an overall slowdown and has brought with it massive inequalities in income and wealth besides pushing even the middle class into absolute poverty. The realty sector and its buyers had certain expectation from the budget, namely: For homebuyers, it was expected to get more tax sops and higher relief on home loan rates + relief on a second home. In the tax sops, the specific areas were standard deduction to increase cash available to buyers and relief on long-term capital gains besides minimum tax rebate of Rs 5 lakh as against the current limit of Rs 2 lakh. For developers, it meant a rational capital flow source to keep up the work process + relief on GST (a single slab, relaxation in under-construction realty, and reduction in taxes on key raw materials) to reduce overall property cost and push demand. It also included granting industry status to the overall real estate sector and having a single window system.
Anuj Puri, Chairman – ANAROCK Group
Providing a broad-spectrum booster shot to the economy, Union Budget 2022-23 is progressive – especially with its emphasis on building the infrastructure of the country. The FM clearly emphasised the top priorities of the government – PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments.
Notably, the government also expanded the Capex target by 35.4% – from INR 5.54 lakh crore to INR 7.50 lakh crore – which may help boost overall spending towards economic growth. The budget also emphasises on the need for proper urban planning, provides some relief to states while keeping the fiscal deficit well under control. In another major positive, the government’s aim to create 6 million new jobs over the next 5 years will enable growth of residential real estate across the country.
Manju Yagnik Vice Chairperson Nahar Group and Sr Vice President NAREDCO MAHARASHTRA
The Union Budget 2022 presented by FM Shrimati Nirmala Sitharaman earlier on Tuesday morning was a growth-oriented one. The FM majorly focussed on India’s push for infrastructure project wheeling out the development plan for Railways, roads, airports, ports, mass transport, waterways and logistics. Under the master plan, the government plans to roll out big infrastructure projects including – the expansion of highways by 25,000 kilometres spread throughout the country, allocating Rs 60,000 crore to the Nal Se Jal scheme, the commencement of five river link projects across many states.
The push towards the infrastructure industry is optimistically anticipated to largely benefit the real estate sector as well. These projects will definitely be beneficial for the real estate sector with regards to better connectivity, enhanced productivity, property as well as rental price appreciation and increased employment rates. With the allocation of an additional Rs 48,000 crore to the Pradhan Mantri Awas Yojana and the identification of 80 lakh households for the affordable housing scheme, the consumer could definitely spark a sharp boost in residential demand.
Also Read: Budget 2022: Will these expectations of Realty Industry come true today?
