The industry reacts to Union Budget 2022-2023

India’s Union Budget 2022-23 has brought forth a host of benefits across industries. For real estate, a reduction in corporate surcharge from 12% to 7% is good news for the developer community. The issuance of digital rupee by RBI using blockchain technology will render more transparency to real estate transactions. Affordable housing has also got a boost with INR 48,000 crore allocated for completion of construction of 80 lakh houses under PM Awas Yojana. INR 60,000 crore has been additionally allocated for the ‘Har Ghar Nal’ program. Last but not the least, additional allocation of INR 19,500 crore for manufacturing solar modules augurs well for real estate.
—Dr Atul Goel, MD, Goel Ganga Group & President (Elect.), NAREDCO Pune

The Union Budget has once again demonstrated the government’s strong commitment towards systematic urban growth with a focus on clean technology, sustainable urban living, and better governance. The government of India will build the right balance between large mega cities as well as tier two and three cities, which is a welcome move. The development agenda will also focus on creating mass transit systems and encouraging EVs which will help in reducing overall carbon footprint and give a better living experience to our city dwellers. Meanwhile, we will also like to thank the government for starting five new urban development institutes in India, as it can herald a new beginning in urban development. 
—Siddharth Maurya, Resource Specialist, Expertise Real- Estate and Fund Management

In the backdrop of dropping COVID-19 cases, Ms Nirmala Sitharaman presented an enabling, positive and futuristic Union Budget 2022-23. The real estate sector has faced severe headwinds in the recent past but is hopeful of a solid recovery with several key budget announcements. With a focus on the construction of over 80 lakh affordable houses by the year 2023, focus on urban development via the concept of mega cities and enhanced focus on tier two and tier three cities will provide the much-needed impetus to the real estate sector. As steel is the backbone of the construction sector, the budget announcements have extended the budget scrap duty by another year. It is in addition to the scrapping of the anti-dumping duty on stainless steel. Reduction in corporate tax for co-operative societies from 18% at present to 15% will reduce burden on the ancillary support industries related to construction and real estate sector. Overall, this is a progressive, supportive, and budget with increased focus on infrastructure development.
—Annuj Goel, MD, Goel Ganga Developments

The Union Budget continues with the trend of announcing major reforms. This year’s budget mainly focused on infrastructure, MSME & rural development. Though the budget was short, it may have more impact in the longer run. The private housing sector did not have any direct reforms made or benefits but the focus on upgradation of technology is going to play a pivotal and catalysing role in surging the demand for the real-estate sector. I see a consistent growth for the realty sector in the next five years.
—Punit Agarwal, M.D & C.E.O, Nirvana Realty

While the government has not announced any significant policies pertaining to real estate, its commitment towards boosting affordable housing and infrastructure remains intact. Focus on the construction of 80 lakh homes in FY23 under the PM Awas Yojna would definitively enable a huge number of home buyers to go in for property purchase. The increase in infra Capex outlay works well with ambitious plans to enhance urban planning and capacity-building across several mega-cities which will boost the real estate sector. We are hoping for more in the coming days, with many of the key concerns still having not been addressed in the Budget. We are hopeful that recommendations from the real estate sector will be addressed as soon as possible. As the sector is one of the biggest contributors to the nation’s GDP, strengthening the sector will also boost the allied economic activities, thereby bringing a positive turnout to the economy as a whole. To sustain the positive outlook of the real estate sector, we are hopeful that the government will usher in various tax benefits and policies in the near future.
— Lincoln Bennet Rodrigues, Chairman and Founder, The Bennet and Bernard Company, known for luxury holiday homes in Goa.

Setting up a high-level urban committee for urban planning and governance is a welcome step that will help in developing policies for sustainable urban development, which in turn will give impetus to real estate development as well. Further, the allocation of INR 48,000 crore to complete 80 lac affordable homes under PMAY is another laudable step and has once again highlighted the government’s continued focus to promo